Homework Answers
Answer : 44) The answer is option b.
The components of aggregate demand are consumption spending, investment spending, government spending and net export. Net export = Export - Import. Now if export decrease faster than import then the net export decrease. If net export decrease remaining other things equal then the aggregate demand decrease in the economy. Hence except option b other options are not correct. Therefore, option b is the correct answer.
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QUESTION 44 Which of the following will decrease aggregate demand in an economy? a. An appreciation...
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply....
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply. c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply. d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand. 2.In the current exchange rate arrangements of IMF members, a. a substantial number of countries do not have a freely floating exchange rate. b. the European Union countries fix their exchange rates against the US dollar....
9 and 10 thanks QUESTION 9 In the long run, with relative PPP, if country A...
9 and 10 thanks
QUESTION 9 In the long run, with relative PPP, if country A consistently has higher inflation than country B, then country A's currency will be against country B's. A. maintaining its value B. depreciating C. appreciating QUESTION 10 If investors believe a country's currency is fixed at a fundamentally overvalued level, the central bank's foreign reserves will most likely be rising True False QUESTION 11 and currency will If Foreign decreases its interest rate, Home's output...
Suppose a decrease in aggregate demand shifts the economy from equilibrium to P, and Y. Price Level ................
Suppose a decrease in aggregate demand shifts the economy from equilibrium to P, and Y. Price Level ............. Y, Y Real GDP a. Which of the following events would likely chuse the decrease in aggregate demand? Personal consumption falls as workers become concerned about future employment prospects Gross investment increases as capital units become fully utilized. Imports decrease due to increased foreign prices. a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption falls...
Suppose a decrease in aggregate demand shifts the economy from equilibrium to P4 and Y1. LRAS...
Suppose a decrease in aggregate demand shifts the economy from equilibrium to P4 and Y1. LRAS Price Level AD Y Y* Real GDP a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption falls as workers become concerned about future employment prospects. Gross Investment Increases as capital units become fully utilized. Imports decrease due to Increased foreign prices b. A decrease in aggregate demand is of policy concern due to the increase in the...
I. The economy of Zarland is operating below the full-employment level of output with a balanced budget. (a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, a...
I. The economy of Zarland is operating below the full-employment level of output with a balanced budget. (a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand, and show each of the following. (Gi) The country's current equilibrium output and price level, labeled Yj and PL1. respectively (ii) The full-employment output, labeled Yf (b) Ir Zarland increases government expenditures and taxes by equal amounts, can aggregate demand increase? Explain. (c) If Zarland decides to...
a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption...
a. Which of the following events would likely cause the decrease
in aggregate demand?
Personal consumption falls as workers become concerned about
future employment prospects.
Imports decrease due to increased foreign prices.
Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
the increase in the:
unemployment rate.
productivity of workers.
price level.
c. Which policy action should the federal government enact?
Increase personal income tax rates
Decrease real...
QUESTION 3 10 points Save Answer Select all that are true regarding Quantitative Easing (QE): The...
QUESTION 3 10 points Save Answer Select all that are true regarding Quantitative Easing (QE): The risks of QE include uncertainty over inflation expectations since it has never been done and it involves massive increases in the money supply, a lack of incentives to borrow since interest rates are so low for so long, and a disincentive for banks to lend due to regulatory uncertainty QE is expressly designed to depreciate the domestic currency via increases in the supply of...
Question Completion Status: O False QUESTION 18 Which of the following changes will decrease the value...
Question Completion Status: O False QUESTION 18 Which of the following changes will decrease the value of common stock, other things being held constant? The required return decreases. In general, investors become more risk averse. The dividend growth rate increases. None of the above. QUESTION 19 Taman Inn unnid en dividend in its namman Annhaldam Vam lan tanumhana tha Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ansi Question Completion...
5 and 6 QUESTION 5 In the long run, with variable real exchange rates, if American...
5 and 6
QUESTION 5 In the long run, with variable real exchange rates, if American goods become less attractive relative to European goods, the dollar will experience a real and a nominal depreciation; depreciation O appreciation; appreciation O depreciation; appreciation O appreciation, depreciation QUESTION 6 and output to A short-run increase in government spending causes the currency to depreciate; increase appreciate; increase appreciate; decrease O depreciate; decrease QUESTION 7 it to save and submit. Click Save All Answers to...
QUESTION 9 An automatic stabilizer is O a tool that helps reduce the effect of a fall in demand for a firm's pr...
QUESTION 9 An automatic stabilizer is O a tool that helps reduce the effect of a fall in demand for a firm's product. O a tool that ensures imports always equal exports in an economy a feature of the economy that reduces its sensitivity to shocks. O a feature of the economy that reduces its dependence on international trade. QUESTION 10 Which of the following is NOT a way for the Fed to increase aggregate demand? O Lowering the discount...
9 and 10 thanks
QUESTION 9 In the long run, with relative PPP, if country A consistently has higher inflation than country B, then country A's currency will be against country B's. A. maintaining its value B. depreciating C. appreciating QUESTION 10 If investors believe a country's currency is fixed at a fundamentally overvalued level, the central bank's foreign reserves will most likely be rising True False QUESTION 11 and currency will If Foreign decreases its interest rate, Home's output...
Suppose a decrease in aggregate demand shifts the economy from equilibrium to P, and Y. Price Level ............. Y, Y Real GDP a. Which of the following events would likely chuse the decrease in aggregate demand? Personal consumption falls as workers become concerned about future employment prospects Gross investment increases as capital units become fully utilized. Imports decrease due to increased foreign prices. a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption falls...
Suppose a decrease in aggregate demand shifts the economy from equilibrium to P4 and Y1. LRAS Price Level AD Y Y* Real GDP a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption falls as workers become concerned about future employment prospects. Gross Investment Increases as capital units become fully utilized. Imports decrease due to Increased foreign prices b. A decrease in aggregate demand is of policy concern due to the increase in the...
I. The economy of Zarland is operating below the full-employment level of output with a balanced budget. (a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand, and show each of the following. (Gi) The country's current equilibrium output and price level, labeled Yj and PL1. respectively (ii) The full-employment output, labeled Yf (b) Ir Zarland increases government expenditures and taxes by equal amounts, can aggregate demand increase? Explain. (c) If Zarland decides to...
a. Which of the following events would likely cause the decrease
in aggregate demand?
Personal consumption falls as workers become concerned about
future employment prospects.
Imports decrease due to increased foreign prices.
Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
the increase in the:
unemployment rate.
productivity of workers.
price level.
c. Which policy action should the federal government enact?
Increase personal income tax rates
Decrease real...
QUESTION 3 10 points Save Answer Select all that are true regarding Quantitative Easing (QE): The risks of QE include uncertainty over inflation expectations since it has never been done and it involves massive increases in the money supply, a lack of incentives to borrow since interest rates are so low for so long, and a disincentive for banks to lend due to regulatory uncertainty QE is expressly designed to depreciate the domestic currency via increases in the supply of...
Question Completion Status: O False QUESTION 18 Which of the following changes will decrease the value of common stock, other things being held constant? The required return decreases. In general, investors become more risk averse. The dividend growth rate increases. None of the above. QUESTION 19 Taman Inn unnid en dividend in its namman Annhaldam Vam lan tanumhana tha Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ansi Question Completion...
5 and 6
QUESTION 5 In the long run, with variable real exchange rates, if American goods become less attractive relative to European goods, the dollar will experience a real and a nominal depreciation; depreciation O appreciation; appreciation O depreciation; appreciation O appreciation, depreciation QUESTION 6 and output to A short-run increase in government spending causes the currency to depreciate; increase appreciate; increase appreciate; decrease O depreciate; decrease QUESTION 7 it to save and submit. Click Save All Answers to...
QUESTION 9 An automatic stabilizer is O a tool that helps reduce the effect of a fall in demand for a firm's product. O a tool that ensures imports always equal exports in an economy a feature of the economy that reduces its sensitivity to shocks. O a feature of the economy that reduces its dependence on international trade. QUESTION 10 Which of the following is NOT a way for the Fed to increase aggregate demand? O Lowering the discount...
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