Use the Following to Answer Questions

question 58

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Demand
-(Exhibit: Aggregate Demand) What could have caused a movement from point A to point D?

• A) Technological advancement
• B) An increase in the inflation rate
• C) An increase in household wealth
• D) A recession in foreign countries

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Definitions:

Fixed Exchange-rate System

A currency value regime where a country's currency is pegged at a set value to another currency, a basket of currencies, or a commodity like gold.

Foreign Exchange Market

A global decentralized or over-the-counter market for trading currencies, facilitating international trade and investment.

Peg

Fixing the exchange rate of a currency by linking it to another currency or basket of currencies.

Fixed Exchange Rates

A currency system where the value of a country's currency is pegged to another currency, a basket of currencies, or a commodity like gold, minimizing fluctuations in exchange rates.