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Author Question: An increase in the value of the dollar in international exchange rate markets will cause the ... (Read 37 times)

cdr_15

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  • Posts: 546
on: Jun 30, 2018
An increase in the value of the dollar in international exchange rate markets will cause the relative price of U.S. produced goods to foreigners to rise, the relative price of foreign produced goods to Americans to fall, causing U.S. exports to fall and U.S. imports to rise.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:
 a. inventory is depleted.
  b. inventory is unchanged.
  c. employment decreases.
  d. employment increases.


frre432

  • Sr. Member
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Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

c


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