Using the aggregate expenditure model, the equilibrium level of ...

[crazycityslicker]

Using the aggregate expenditure model, the equilibrium level of the aggregate expenditure can occur when the economy is producing
 
  A) only at above full employment.
  B) at full employment, above full employment, or below full employment.
  C) at either below full employment or at full employment but never at above full employment.
  D) only at below full employment.
  E) only at full employment.

Question 2

In the foreign exchange market, how will each of the following influences affect the demand for dollars and the demand curve for dollars?
 
  a. an increase in the exchange rate
  b. an increase in the U.S. interest rate
  c. a fall in the expected future exchange rate

[Carliemb17]

Answer to Question 1

B

Answer to Question 2

a. The increase in the exchange rate decreases the quantity of dollars demanded and creates an upward movement along the demand curve for dollars.
b. An increase in the U.S. interest rate increases the demand for dollars and shifts the demand curve for dollars rightward.
c. A fall in the expected future exchange rate decreases the demand for dollars and shifts the demand curve for dollars leftward.

[crazycityslicker]

Thank you

[Carliemb17]

Happy to help you