________ typically lead to increases in ________.
A) decreases in interest rates; investment
B) increases in disposable income; consumption
C) increases in autonomous investment; investment
D) all of the above
E) none of the above
Question 2
Refer to Figure 12.5. If exchange rates are floating, an expansionary monetary policy would best be represented by a movement from ________ in panel (a) and a corresponding movement from ________ in panel (b).
A) point A to point B; point X to point Y
B) point C to point A; point X to point Y
C) point D to point C; point Y to point X
D) point B to point D; point Y to point X
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