A Depreciation of the Dollar Under Perfect Capital Mobility Would

question 22

Multiple Choice

A depreciation of the dollar under perfect capital mobility would cause

• A)the LM curve to shift to the left.
• B)the LM curve to shift to the right.
• C)the IS curve to shift to the right.
• D)the IS curve to shift to the left.
• E)the BP curve to shift up.

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Definitions:

Jamestown Colony

The first permanent English settlement in North America, established in Virginia in 1607.

Nomadic Tribes

Describes groups of people who move from one place to another, rather than settling permanently in one location, often for reasons such as following seasonal weather patterns or searching for food resources.

Severe Drought

A prolonged period of excessively dry weather leading to a significant shortage of water.

Jamestown

The first permanent English settlement in North America, established in 1607 in present-day Virginia.