If the Dollar Appreciates, Aggregate Demand _____ and Output in the Short

question 220

Multiple Choice

If the dollar appreciates, aggregate demand _____ and output in the short run _____.

• A) rises; expands
• B) rises; decreases
• C) falls; decreases
• D) falls; expands

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Definitions:

Disposable Income

Indicates the sum of funds households can allocate towards expenditure and savings once income taxes have been deducted.

Disposable Income

Households' available economic resources for spending and saving post-tax.

Disposable Income

The amount of money an individual or household has to spend or save after taxes have been deducted.

Savings

Money that is set aside from disposable income, often placed in interest-bearing accounts for future use or investment.