A Currency Depreciation Affects Total Spending in the Short Run

Multiple Choice

A currency depreciation affects total spending in the short run through expenditure switching, but the net external wealth effect also can influence:

A) other types of expenditure such as consumption or investment.
B) the ability of the nation to keep up technologically, since new capital will be more expensive.
C) the production function of the home country.
D) the ability of the government to conduct monetary policy.