Author Question: If the Japanese government enters the foreign exchange market and sells yen to maintain a specific ... (Read 198 times)

plus1 · **on:** Jun 29, 2018

If the Japanese government enters the foreign exchange market and sells yen to maintain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________.

A) depreciate; depreciate B) depreciate; appreciate
C) appreciate; depreciate D) appreciate; appreciate

Question 2

The smaller the slope of the aggregate planned expenditure (AE) curve, the

A) larger are imports.
B) smaller the multiplier.
C) larger the multiplier.
D) larger are exports.
E) larger is the marginal tax rate.