In the Short Run, Any Rise in the Real Exchange

question 22

Multiple Choice

In the short run, any rise in the real exchange rate, EP /P, will cause

• A) an upward shift in the aggregate demand function and a reduction in output.
• B) an upward shift in the aggregate demand function and an expansion of output.
• C) a downward shift in the aggregate demand function and an expansion of output.
• D) an downward shift in the aggregate demand function and a reduction in output.
• E) an upward shift in the aggregate demand function but leaves output intact.

---

Definitions:

Myometrium

The muscular structure of the uterus.

Endometrium

The mucous membrane lining of the uterus.

Serous Membrane

A thin layer of tissue lining certain internal cavities of the body, secreting a serous fluid to lubricate and reduce friction between tissues.

Seminiferous Tubules

Narrow, coiled tubules within the testes where sperm is produced during the process of spermatogenesis.