The foreign exchange rate is defined as the A) equal to the ...

[erika]

The foreign exchange rate is defined as the
 
  A) equal to the amount of the current account deficit.
  B) equal to the amount of the capital account deficit.
  C) volume of the world currencies traded.
  D) rate or the speed with which the currencies of the worlds are traded.
  E) price at which one currency exchanges for another.

Question 2

A change in any component of aggregate demand creates a larger change in overall aggregate demand. This is the ________ effect, and it means, for example, that a(n) ________ in consumption will cause an even larger ________ in AD.
 
  A) multiplier; increase; increase
  B) growth; increase; decrease
  C) multiplier; decrease; decrease
  D) liquidity; decrease; decrease
  E) liquidity; increase; increase

[asdfghjkl;]

Answer to Question 1

E

Answer to Question 2

C

[erika]

Thanks for the timely response, appreciate it

[kishoreddi]

Wow, this really help