Figure 132

question 83

Multiple Choice

Figure 13.2. Australian Economy Under a Fixed Exchange Rate System

-Refer to Figure 13.2.Starting at equilibrium income $50 billion,where (S- I) ? intersects (X-M) ?,suppose that worsening economic conditions abroad lead to an autonomous decrease in Australian exports of $5 billion.Australian income thus ____ which leads to Australia's trade account moving to a ____.

• A) Rises to $60 billion, surplus of $2.5 billion
• B) Rises to $60 billion, surplus of $5 billion
• C) Falls to $40 billion, deficit of $2.5 billion
• D) Falls to $40 billion, deficit of $5 billion

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Definitions:

Truthful

Truthful means being honest or accurate, not hiding the reality of a situation or information from those who are entitled to know.

Aging Men

Refers to the natural process and implications of becoming older, specifically in the context of male individuals.

Ethical Danger

Situations or actions that pose a risk of compromising ethical standards, leading to decisions or behaviors that are morally questionable.

Agents

Agents in negotiations refer to individuals who represent another party's interests, acting on their behalf to achieve favorable terms in a deal or agreement.