Assuming That the Increase in the Value of the Dollar

question 57

Multiple Choice

Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply,an increase in the United States budget deficit will raise Real GDP

• A)more in an open economy than in a closed economy.
• B)more in a closed economy than in an open economy.
• C)to the same level irrespective of whether it is a closed or an open economy.
• D)none of the above (i.e.Real GDP will decrease)

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Definitions:

Legumes

A group of plants including beans, peas, and lentils, known for their high protein and fiber content, and beneficial for heart health and weight management.

Healthy Snack

A nutritious food option consumed between meals that contributes to overall health and satisfies hunger, often including fruits, vegetables, whole grains, or nuts.

Potato Chips

Thin slices of potato that are either deep fried or baked until crispy, often seasoned and served as a snack.

Nonfat Yogurt

Yogurt made without any fat content, often used as a dietary choice for those reducing fat intake.