If the marginal propensity to save is 0.4, the multiplier is 2.5

Last week, six Swedish kronor could purchase one U.S. dollar. This week, it takes eight Swedish kronor to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S

aggregate demand. A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease

Activists believe that ________

A) frictions to the self-correcting mechanism of markets prevent prices and wages from being very flexible B) it takes a very long time to reach the long run C) Keynes was right with his statement "in the long-run, we are all dead" D) all of the above E) none of the above