The Rising Dollar in the Early 1980s Can Be Attributed

question 5

Multiple Choice

The rising dollar in the early 1980s can be attributed to

• A)high real interest rates in the United States
• B)improved investment prospects in the United States
• C)the growing U.S.budget deficit
• D)a and b only

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Definitions:

MPC

Marginal Propensity to Consume, a measure of how much consumption changes with a change in income.

Aggregate Demand

The total demand for all goods and services within a particular economy at a given overall price level and in a given time period.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender, often expressed as an annual percentage rate (APR).

Multiplier

In macroeconomics, a factor that quantifies how an initial change in spending will affect total economic output.