If we consider the equation PAE = A + bY the independent part of the equation that depends on income is:

If the exchange rate depreciates, then the

A) demand for dollars decreases. B) quantity of dollars demanded decreases. C) supply of dollars decreases. D) demand for dollars increases. E) quantity of dollars demanded increases.

The major difference between the lag in monetary policy versus the lag in fiscal policy stems from the

A) data lag. B) legislative lag. C) recognition lag. D) transmission lag.