Let C = 800 + 0.6y and I = 100. Assume no government or foreign sectors. If investment decreases by 40, then the value of the multiplier is

Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate?

A) The DD curve shifts to the left due to reduction of aggregate demand. B) The AA curve shifts downwards due to reduction of money supply. C) a fall in aggregate output D) depreciation in home country's currency E) a fall in the home interest rate

All of the following are reasons countries may be unable to use discriminatory trade practices to enforce labor standards EXCEPT

A) countries can never impose trade barriers on other sovereign nations. B) the WTO requires nations to treat other nations the same. C) a single country may be unsuccessful in convincing members of its trading block to participate in imposing the sanctions. D) retaliation or a full blown trade war might result.