In the basic closed-economy ISLM model, as the interest sensitivity of money demand increases, fiscal policy has ________ effect on output and monetary policy has ________ effect on output

Paper money is fiat money because it has been declared by government as a means of exchange

a. True b. False Indicate whether the statement is true or false

An appreciation of the Japanese yen relative to the U.S. dollar will

a. increase aggregate demand in the United States. b. increase aggregate supply in the United States. c. increase aggregate demand in Japan. d. decrease aggregate supply in Japan.