Author Question: The key difference between the real exchange rate and the market exchange rate is that the market ... (Read 317 times)

Alainaaa8 · **on:** Jun 29, 2018

The key difference between the real exchange rate and the market exchange rate is that the market exchange rate controls for the level of prices.

Indicate whether the statement is true or false

Question 2

According to the aggregate expenditure model, when autonomous expenditure increases, equilibrium expenditure

A) increases by an equal amount.
B) does not change because autonomous expenditures has no effect on equilibrium expenditure.
C) does not change because only induced expenditures increase equilibrium expenditure.
D) increases by a smaller amount.
E) increases by a larger amount.