________ in the foreign interest rate causes the demand for domestic assets to shift to the left and the domestic currency to ________, everything else held constant

A) An increase; appreciate
B) An increase; depreciate
C) A decrease; appreciate
D) A decrease; depreciate

B

Economics

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The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand

Indicate whether the statement is true or false

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If the inflation rate is lower than expected, real income is redistributed from lenders to borrowers

a. True b. False

Economics