Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. What will happen to the Canadian IS curve as a result of the leftward shift of the U.S. IS curve?
A) It will shift rightward.
B) It will shift leftward.
C) It will not change.
D) The IS curve will show an increase.
Answer: B) It will shift leftward.
Economics
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When the monetary base increases by $2 billion, the quantity of money increases by $10 billion. Thus, the money multiplier equals
A) 0.2. B) 5. C) 20.0. D) 0.5.
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In the 1870s, roughly ___ percent of immigrants came from northern and western Europe; by 1910, more than ___ percent of the total came from southern and eastern Europe
a. 10; 10 b. 20; 80 c. 40 ; 60 d. 80; 80
Economics