Author Question: As the economy moves up and to the left along the IS curve, which of the following will occur when ... (Read 49 times)

james · **on:** Jun 30, 2018

As the economy moves up and to the left along the IS curve, which of the following will occur when exchange rates are flexible?

A) investment spending decreases
B) consumption decreases
C) the domestic currency appreciates
D) all of the above
E) none of the above

Question 2

For this question, assume that a country experiences a permanent increase in its saving rate. Which of the following will occur as a result of this increase in the saving rate?

A) a permanently faster growth rate of output
B) a permanently higher level of output per capita
C) a permanently higher level of capital per worker
D) all of the above
E) both B and C.