A change in which of the following variables will have no direct effect on the level of domestic demand?

Name: A change in which of the following variables will have no direct effect on the level of domestic demand?
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Question

Quizplus · Accepted Answer

The level of domestic demand is not directly affected by the real exchange rate, as it only affects the relative prices of domestic and foreign goods. Domestic income, taxes, real interest rate, and government spending all directly affect the level of domestic demand.

A Change in Which of the Following Variables Will Have