If the value of the domestic currency depreciates:
a. Aggregate demand falls and aggregate supply rises.
b. Aggregate demand rises and aggregate supply rises.
c. Aggregate demand rises and aggregate supply falls.
d. Neither aggregate demand nor aggregate supply change.
e. None of the above.
.C
Economics
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Goods A and B are substitutes. If the price of good A falls, the marginal revenue product (MRP) curve of good B
A. will become more inelastic. B. will shift in. C. will not change. D. will shift out.
Economics
Assume that in Atlantis the actual deficit is $200 billion. If Atlantis were at full employment, the deficit would be $50 billion. The structural deficit in Atlantis is
A. $50 billion. B. $100 billion. C. $150 billion. D. $200 billion.
Economics