Suppose the official gold value of the Brazilian real changes from 527 reals per ounce to 508 reals per ounce. We can then say that:
a. the Brazilian real has depreciated in value as a consequence of free market fluctuations.
b. the Brazilian real has appreciated in value.
c. gold is now more expensive to purchase in Brazil than it was before.
d. the Brazilian real has been devalued.
e. the Brazilian economy is expected to experience rapid inflation.
b
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The foreign purchases, interest rate, and real-balances effects explain why the:
A. Aggregate demand curve is downward-sloping B. Aggregate demand curve may shift to the left or right C. Economy will adjust towards equilibrium D. Aggregate expenditures schedule may shift up or down