Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate? 1.The AA curve shifts downwards due to reduction of money supply. 2.a fall in aggregate output 3.depreciation in home country's currency 4.The DD curve shifts to the left due to reduction of aggregate demand. 5.a fall in the home interest rate

Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate? 1.The AA curve shifts downwards due to reduction of money supply. 2.a fall in aggregate output 3.depreciation in home country's currency 4.The DD curve shifts to the left due to reduction of aggregate demand. 5.a fall in the home interest rate

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 8DQ

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