Suppose That a Partner Country Autonomously Increases Its Demand for the Home

question 15

Multiple Choice

Suppose that a partner country autonomously increases its demand for the home country's exports. With a fixed exchange system, this increase in export demand __________; with a flexible exchange rate system, this increase in export demand __________.

• A) will shift the home country's AD curve to the right; also will shift the home country's AD curve to the right.
• B) will shift the home country's AD curve to the right; will not shift the home country's AD curve.
• C) will not shift the home country's AD curve; will shift the home country's AD curve to The right
• D) will not shift the home country's AD curve; also will not shift the home country's AD Curve

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Definitions:

Ciliates

A group of protozoans characterized by the presence of hair-like organelles called cilia for movement and feeding.

Radiolarians

Those actinopods that secrete elaborate shells of silica (glass).

Axopods

Long, filamentous, cytoplasmic projections characteristic of actinopods.

Silica Shells

Rigid, protective, outer coverings made of silica found in certain algae and microscopic aquatic organisms, such as diatoms.