1. If a country's exchange rate increases, its expenditures function will:
A. become steeper.
B. become flatter.
C. shift up.
D. shift down.
2. The multiplier effect would not occur if:
A. the marginal propensity to expend equaled 1.
B. all expenditures were induced expenditures.
C. all expenditures were autonomous expenditures.
D. changes in saving did not affect the level of investment.
3. The long-run aggregate supply curve plays an important role in determining:
A. the price level in the short-run.
B. output in the short-run.
C. output in the short-run and long-run.
D. output in the long-run.
A. become steeper.
B. become flatter.
C. shift up.
D. shift down.
2. The multiplier effect would not occur if:
A. the marginal propensity to expend equaled 1.
B. all expenditures were induced expenditures.
C. all expenditures were autonomous expenditures.
D. changes in saving did not affect the level of investment.
3. The long-run aggregate supply curve plays an important role in determining:
A. the price level in the short-run.
B. output in the short-run.
C. output in the short-run and long-run.
D. output in the long-run.