Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect.
A) multiplier B) expenditure C) aggregate demand D) consumption
Question 2
Assuming the United States is the domestic country, if the real exchange rate between the United States and France increases from 1.5 to 1.8
A) the prices of U.S. goods and services have increased by 20 relative to France.
B) the prices of U.S. goods and services have increased by 53 relative to France.
C) the prices of U.S. goods and services have increased by 3 relative to France.
D) the prices of U.S. goods and services have decreased by 16 relative to France.
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