A Currency Appreciation Is Disinflationary and Contractionary If the

question 27

Multiple Choice

A currency appreciation is disinflationary and contractionary if the

• A)inward shift of the aggregate demand curve due to the fall in exports exceeds the outward shift of the aggregate supply curve due to lower input prices.
• B)outward shift of the aggregate demand curve due to the rise in exports exceeds the outward shift of the aggregate supply curve due to lower input prices.
• C)outward shift of the aggregate demand curve due to the fall in exports exceeds the inward shift of the aggregate supply curve due to higher input prices.
• D)inward shift of the aggregate demand curve due to lower input prices exceeds the outward shift of the aggregate supply curve due to the rise in exports.

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Definitions:

Corporation

A legal entity (“person”) chartered by a state or the federal government that is distinct and separate from the individuals who own it.

Personal Responsibility

The idea that an individual is accountable for their actions and wellbeing, including making decisions that affect their life and those around them.

Circular Flow Model

A diagram that demonstrates the movement of money, resources, and goods and services in an economy between households, firms, and the government.

Resource Markets

Marketplaces where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.