Which of the Following Is Not a Result of a Permanent

question 10

Multiple Choice

Which of the following is not a result of a permanent fall in foreign demand on one country's exports under floating exchange rate?

• A) The DD curve shifts to the left due to reduction of aggregate demand.
• B) The AA curve shifts upwards due to the increased expected long-run exchange rate.
• C) a reduction in output by a smaller degree compared to temporary fall in demand
• D) depreciation in home country's currency
• E) a raised level of unemployment

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Definitions:

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