Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,

Which of the following statements is false?

A) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed that investment demand was interest-insensitive. B) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed the money market was in the liquidity trap. C) Keynesians would advocate an expansionary monetary policy to eliminate a recessionary gap if they believed investment spending was insensitive to changes in the interest rate. D) Keynesians believe that money wages are inflexible in the downward direction.

The exchange rate for one euro goes from $0.87 to $1.21. This change will result in:

A. An increase in American exports to France B. An increase in French exports to the United States C. American goods becoming more expensive for the French D. French goods becoming less expensive to Americans