D
dextar
Member
Hi
Which of the following will result in a decrease in aggregate demand for an economy
with international trade, other things being equal?
A A rise in imports
B A fall in savings
C A fall in interest rates
D A fall in economic and business uncertainty
Again i'm failing in chapter 16 . I think it is testing that only
my reasoning is if AD has to decrease then the domestic currency has to depreciate and international one has to appreciate.
Some of the reasons mentioned in the material is
Possible causes of depreciation includes
a fal in domestic interest rate
higher inflation
rise in domestic income and increasing import
Answer is A but why not C ?
Which of the following will result in a decrease in aggregate demand for an economy
with international trade, other things being equal?
A A rise in imports
B A fall in savings
C A fall in interest rates
D A fall in economic and business uncertainty
Again i'm failing in chapter 16 . I think it is testing that only
my reasoning is if AD has to decrease then the domestic currency has to depreciate and international one has to appreciate.
Some of the reasons mentioned in the material is
Possible causes of depreciation includes
a fal in domestic interest rate
higher inflation
rise in domestic income and increasing import
Answer is A but why not C ?