Which of the following is TRUE of the current account balance?

A) Monetary expansion has no effect on the current account balance.
B) Monetary expansion decreases the current account balance.
C) Fiscal expansion increases the current account balance.
D) Fiscal expansion has no effect on the current account balance.
E) Monetary expansion increases the current account balance.

E

Economics

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A change in the price level does not shift the aggregate demand curve

Indicate whether the statement is true or false

Economics

According to the new Keynesian economists, SAS adjusts slowly to a change in AD because of

A) high menu costs. B) staggered overlapping wage contracts. C) efficiency wages. D) All of the above combinations explain slow adjustments in SAS.

Economics