When the economy enters an expansion of a business cycle, ...

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When the economy enters an expansion of a business cycle, households become more optimistic about expected future disposable income. The increase in optimism leads to
 
  A) a shift upward of the consumption function.
  B) a movement downward along the consumption function.
  C) no change in the level of consumption expenditures.
  D) an increase in consumption expenditures.
  E) a movement upward along the consumption function.

Question 2

An increase in the money supply will appreciate a country's currency.
 
  Indicate whether the statement is true or false

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Answer to Question 1

A

Answer to Question 2

FALSE