For a country in recession
A. an increase in exports will increase aggregate demand and output
B. an decrease in exports will increase aggregate demand and output
C. an increase in imports will increase aggregate demand and output
D. none of the above
Ans: A. an increase in exports will increase aggregate demand and output
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Forward and spot exchange rates
A) are necessarily equal. B) do not move closely together. C) are always such that the forward exchange rate is higher. D) move closely together and are equal on the value date. E) are unrelated to the value date.
You draw colored balls out of a bag. You draw a red ball 30% of the time and a blue ball 70% of the time. For each draw, the blue outcome and the red outcome are
A) mutually exclusive. B) exhaustive. C) Both A and B. D) None of the above.