Refer to the Diagram $\left( \mathrm { C } + I _ { g } + X _ { n 2 } \right)$

question 15

Multiple Choice

Refer to the diagram. The change in aggregate expenditures as shown from $\left( \mathrm { C } + I _ { g } + X _ { n 2 } \right)$ to $\left( C + I _ { g } + X _ { n 1 } \right)$ might be caused by

• A) an appreciation of this nation's currency relative to the currencies of its trading partners.
• B) a depreciation of this nation's currency relative to the currencies of its trading partners.
• C) a decrease in this nation's price level relative to price levels abroad.
• D) a rightward shift in this nation's 45-degree line.

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Definitions:

Compensable Loss

A financial loss for which one can receive compensation, often through insurance or litigation.

Duty of Care

A duty mandated by law placed on a person to exercise reasonable care in actions that might predictably injure other people.

Skateboard

A small, narrow board with two pairs of wheels attached to its bottom, used for the sport of skateboarding.

Negligently Hits

Negligently hitting refers to causing harm or damage to a person or property through careless or irresponsible actions or behaviors.