Holding other things constant, increases in the price level in the US will

a. Cause the dollar to appreciate
b. Cause the dollar to depreciate
c. Does not affect the dollar value
d. None of the above

b

Economics

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Positive relationships are also referred to as inverse relationships

Indicate whether the statement is true or false

Economics

Suppose the marginal propensity to consume equals .8 (i.e., c1 = .8). Given this information, which of the following events will cause the largest increase in output?

A) G increases by 200 B) T decreases by 200 C) I increases by 150 D) both A and B

Economics