Assuming That the Increase in the Value of the Dollar

question 57

Multiple Choice

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply,an increase in the United States budget deficit will raise Real GDP

• A)more in an open economy than in a closed economy.
• B)more in a closed economy than in an open economy.
• C)to the same level irrespective of whether it is a closed or an open economy.
• D)none of the above (i.e.Real GDP will decrease)

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Definitions:

Multipurpose Dams

Multipurpose dams are large-scale engineering projects designed to serve several functions simultaneously, such as water supply, electricity generation, flood control, and recreation.

Hydroelectric Power

The generation of electricity using flowing water to drive a turbine generator.

New Deal Coalition

A political alliance in the United States, formed during the 1930s under President Franklin D. Roosevelt, bringing together diverse groups to support the New Deal and Democratic Party.

Urban Working Class

The segment of the population that lives in cities and performs manual labor or factory work for wages.