Which of the Following Is Correct

question 55

Multiple Choice

Which of the following is correct?

• A)An increase in the money supply causes the interest rate to decrease so that aggregate demand shifts left.
• B)An increase in stock prices reduces consumption spending so that aggregate demand shifts left.
• C)An increase in the price level causes the exchange rate to rise so that aggregate demand shifts left.
• D)A recession in other countries reduces U.S.net exports so that U.S.aggregate demand shifts left.

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Definitions:

Units

Basic quantities or items in measurement or statistics that are counted or measured in a dataset.

Multiple Regression Model

A technique in statistics used to determine how a dependent variable is influenced by two or more independent variables.

Independent Variables

Elements within a model or an experiment that are intentionally modified to gauge their influence on variables that depend on them.