Holding other things constant, decreases in the price level in the US will
a. Cause the dollar to appreciate
b. Cause the dollar to depreciate
c. Cause no change in dollar value
d. None of the above
a
Economics
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If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally by $1,000 billion and cause inflation. If the marginal propensity to consume (MPC) is 0.80, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:
a. government spending by $200 billion. b. taxes by $100 billion. c. taxes by $1,000 billion. d. government spending by $1,000 billion.
Economics
Variable inflation rates may be more costly socially than low but predictable rates of inflation.
Answer the following statement true (T) or false (F)
Economics