How would aggregate demand change if foreign incomes increase and the exchange rate value of the dollar increases?
a. Neither change would affect aggregate demand.
b. The increase in income would decrease aggregate demand; the increase in the exchange rate would increase aggregate demand.
c. The increase in income would increase aggregate demand; the increase in the exchange rate would decrease aggregate demand.
d. Both changes would decrease aggregate demand.
C
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The interdependence among oligopoly firms arises because: a. the products those firms produce are homogeneous
b. the products those firms produce are heterogeneous. c. entry barriers are low. d. a small number of firms produce a large share of industry output.
Between 1960 and 2012, the share of federal spending allocated to national defense
a. declined sharply, while the share allocated to health care increased substantially. b. rose sharply, while the share allocated to health care declined substantially. c. was relatively constant, while the share allocated to health care declined modestly. d. declined modestly, while the share allocated to health care was relatively constant.