Figure 13.2 -Refer to Figure 13.2.Starting from an Equilibrium Point A,if the Point

question 16

Multiple Choice

Figure 13.2
-Refer to Figure 13.2.Starting from an equilibrium point A,if the IS curve shifts to the left to IS₂,

• A) there will be official settlement deficit which pressures the domestic currency to depreciate.
• B) there will be official settlement deficit which pressures the domestic currency to appreciate.
• C) there will be official settlement surplus which pressures the domestic currency to depreciate.
• D) there will be official settlement surplus which pressures the domestic currency to appreciate.

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Definitions:

Equivocation

The misleading use of a term with more than one meaning or sense.

Switches Meaning

To change or alter the definition or perception of a word or phrase within a context.

Equivocation

The misleading use of a word with more than one meaning or sense, often to confuse or deceive.

Sodium Chloride

The chemical compound known as table salt, comprised of sodium (Na) and chloride (Cl) ions; essential for human life but also widely used in industry.