Figure 36-7 In Figure 36-7, There Are Three Aggregate Expenditure Functions

question 56

Multiple Choice

Figure 36-7

In Figure 36-7, there are three aggregate expenditure functions ( C + I + G + X − IM ) for an open economy. Which of the following would cause a movement from A to B?

• A) An increase in interest rates
• B) An appreciation of the dollar
• C) A depreciation of the dollar
• D) An increase in the U.S. price level

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Definitions:

Debit Column

In bookkeeping, the column in an account where debits are recorded, typically on the left-hand side.

Assets

Economic resources owned or controlled by a business or individual, expected to bring future benefits.

Expenses

The costs incurred in the process of generating revenues, including costs like rent, salaries, and utilities.

Revenues

The gross revenue stemming from the primary operational activities of a firm, particularly from selling products or services.