A revaluation causes which of the following to occur in the short ...

[P68T]

A revaluation causes which of the following to occur in the short run in the AS/AD model?
 
  A) a reduction in net exports
  B) a reduction in the price level
  C) a reduction in output
  D) all of the above
  E) none of the above

Question 2

When steady state capital per worker is above the golden-rule level, we know with certainty that an increase in the saving rate will
 
  A) increase consumption in both the short run and the long run.
  B) decrease consumption in both the short run and the long run.
  C) decrease consumption in the short run, and increase it in the long run.
  D) increase consumption in the short run, and decrease it in the long run.
  E) none of the above

[carlsona147]

Answer to Question 1

D

Answer to Question 2

B

[P68T]

Thank you

[carlsona147]

Happy to help you