Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD1 the result in the short run would be:

According to the quantity theory of money, if M's growth is lower than Q's, then:

a. V falls. b. V rises. c. P stays the same d. P falls. e. P rises

Which of the following statements is true?

A. Expansionary monetary policy tends to lower the exchange rate of an economy. The effects of expansionary fiscal policy are unclear. B. Expansionary fiscal and monetary policy both tend to increase the exchange rate of an economy. C. The effects of both expansionary fiscal and monetary policy on the exchange rate of an economy are unclear. D. Expansionary fiscal policy tends to increase the exchange rate of an economy. The effects of expansionary monetary policy are unclear.