Aggregate Demand_{--------------------}and Shifts the AD Curve_{--------------------} When _{--------------------}

question 70

Multiple Choice

Aggregate demand_{--------------------}and shifts the AD curve_{--------------------} when _{--------------------}.

• A)decreases; rightward; government expenditure increases
• B)decreases; leftward; government expenditure increases
• C)increases; rightward; taxes increase
• D)increases; leftward; taxes decrease
• E)decreases; leftward; foreign incomes decrease

Understand the impact of national income fluctuations on currency exchange rates.

Comprehend the effect of foreign investments and tourism on currency values.

Know the differences between fixed and flexible exchange rate systems and their advantages and disadvantages.

Understand policy tools available to governments to maintain fixed exchange rates.