When the market value of the dollar falls relative to other ...

[MirandaLo]

When the market value of the dollar falls relative to other currencies around the world, we say that
 
  A) the supply of dollars has decreased. B) the dollar has depreciated.
  C) the demand for dollars has decreased. D) the dollar has appreciated.

Question 2

Suppose real GDP is 12.1 trillion and potential GDP is 12.6 trillion. To move the economy back to potential GDP, Congress should
 
  A) lower taxes by an amount less than 500 billion.
  B) lower taxes by 500 billion.
  C) raise government purchases by more than 500 billion.
  D) lower government purchases by 500 billion.
  E) raise government purchases by 500 billion.

[IAPPLET]

Answer to Question 1

B

Answer to Question 2

A

[MirandaLo]

Gracias!

[sarah_brady415]

Excellent