If the economy is in the expansion phase of a business cycle and investment increases, when the multiplier effect kicks in, the expansion
A) is not effected.
B) peaks.
C) picks up speed.
D) reverses.
E) slows down.
Question 2
A country undertakes a revaluation in order to
A) decrease its net exports. B) move to a flexible exchange rate system.
C) lower the value at which its currency is pegged. D) increase its net exports.
