Econia and Macroland Are Each Other's Main Trading Partner

question 114

Multiple Choice

Econia and Macroland are each other's main trading partner. Which of the following correctly identifies an event that would cause Econia's aggregate demand to rise and Macroland's aggregate demand to fall?

• A) Inflation is higher in Econia than Macroland.
• B) Inflation is lower in Econia than Macroland.
• C) Econia's currency appreciates in value compared to Macroland's currency.
• D) Econia's currency depreciates in value compared to Macroland's currency.

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Definitions:

Extension

Extension is a movement that increases the angle between two body parts, such as straightening a flexed knee.

Bending Forward

A physical movement where the upper body moves closer to the legs, often used in exercises or as a stretch.

Shrugging Shoulders

A movement involving elevation of the shoulders, often as a gesture of indifference or to activate specific muscles in the upper body.

Biaxial Joint

A type of synovial joint that allows movement around two axes, providing a greater range of motion, such as seen in the wrist or ankle.