Which of the following situations lead firms to increase production?
A) real GDP = 16.0 trillion and aggregate planned expenditures = 15.0 trillion
B) real GDP = 15.0 trillion and aggregate planned expenditures = 14.0 trillion
C) real GDP = 12.0 trillion and aggregate planned expenditures = 12.0 trillion
D) real GDP = 15.0 trillion and aggregate planned expenditures = 16.0 trillion
E) Both answers A and C are correct.
Question 2
If the exchange rate rises, the quantity of dollars demanded
A) increases and there is movement down along the demand curve for dollars.
B) decreases and there is movement down along the demand curve for dollars.
C) decreases and there is movement up along the demand curve for dollars.
D) increases and there is movement up along the demand curve for dollars.
E) does not change.
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