The foreign purchases effect
A) shifts the aggregate demand curve rightward.
B) shifts the aggregate demand curve leftward.
C) shifts the aggregate supply curve rightward.
D) moves the economy along a fixed aggregate demand curve.
Correct Answer:
Verified
Q3: The determinants of aggregate demand
A) explain why
Q6: If investment increases by $10 billion and
Q8: The interest-rate effect suggests that
A) a decrease
Q11: Other things equal, a decrease in the
Q12: An increase in net exports will shift
Q18: The real-balances, interest-rate, and foreign purchases effects
Q19: The real-balances effect indicates that
A)an increase in
Q32: The aggregate supply curve (short run)
A) slopes
Q40: The aggregate supply curve (short run)
A) graphs
Q44: A rightward shift in the aggregate supply
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