Which of the Following Can Explain the Upward Slope of the Short-Run

question 87

Multiple Choice

Which of the following can explain the upward slope of the short-run aggregate supply curve?

• A)nominal wages are slow to adjust to changing economic conditions
• B)as the price level falls,the exchange rate falls
• C)an increase in the money supply lowers the interest rate
• D)an increase in the interest rate increases investment spending

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Definitions:

Eurodollar Transactions

Financial transactions involving U.S. dollars deposited in banks outside the United States, often used in international lending and finance.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of the other.

Supply And Demand

Economic model of price determination in a market, where the quantity of a good supplied by producers and the quantity demanded by consumers depend on the price level.

Currencies

Systems of money in common use, particularly in a nation or economic region, serving as a medium of exchange.