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Author Question: Assume the Marshall-Lerner condition holds. Which of the following will cause a reduction in net ... (Read 14 times)

lidoalex

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on: Jun 30, 2018
Assume the Marshall-Lerner condition holds. Which of the following will cause a reduction in net exports?
 
  A) a reduction in government spending
  B) a reduction in investment
  C) an increase in foreign output
  D) an increase in the real exchange rate
  E) all of the above

Question 2

When the policy rate increases,
 
  A) IS curve does not change.
  B) IS curve shifts to the right.
  C) IS curve shifts to the left.
  D) LM curve shifts upward.
  E) LM curve shifts downward.


chem1s3

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


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