Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: A sudden, unexpected surge in inflation in the United States causes reduced purchases of U.S. goods by foreigners.

You hear that the price of gasoline will fall 20 cents overnight. This will tend to

A) increase your demand today. B) decrease your demand tomorrow. C) increase your demand tomorrow. D) leave your demand unchanged both today and tomorrow, especially if it is highly elastic to changes in prices.

A rightward shift in the aggregate supply curve with no change in the aggregate demand curve signals an economic expansion

a. True b. False Indicate whether the statement is true or false