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123kduncan 123kduncan
wrote...
6 years ago
If the value of the domestic currency depreciates:
 a. Aggregate demand rises and aggregate supply falls.
  b. Aggregate demand rises, but aggregate supply does not change.
  c. Aggregate demand falls and aggregate supply rises.
  d. Aggregate demand rises and aggregate supply rises.
  e. Aggregate demand falls and aggregate supply falls.



Question 2 - Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period falls and real GDP falls.
  b. The quantity of real loanable funds per time period falls and real GDP rises.
  c. The quantity of real loanable funds per time period rises and real GDP remains the same.
  d. The quantity of real loanable funds per time period and real GDP remain the same.
  e. There is not enough information to determine what happens to these two macroeconomic variables.
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BetardsamereBetardsamere
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Posts: 331
Rep: 3 0
6 years ago
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123kduncan Author
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6 years ago
TY
wrote...
6 years ago
My pleasure
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