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Refer to the Diagram (C+Ig+Xn2)\left( \mathrm { C } + I _ { g } + X _ { n 2 } \right)

Question 118

Multiple Choice

   Refer to the diagram. The change in aggregate expenditures as shown from  \left( \mathrm { C } + I _ { g } + X _ { n 2 } \right)   to  \left( C + I _ { g } + X _ { n 1 } \right)    might be caused by A)  an appreciation of this nation's currency relative to the currencies of its trading partners. B)  a depreciation of this nation's currency relative to the currencies of its trading partners. C)  a decrease in this nation's price level relative to price levels abroad. D)  a rightward shift in this nation's 45-degree line. Refer to the diagram. The change in aggregate expenditures as shown from (C+Ig+Xn2) \left( \mathrm { C } + I _ { g } + X _ { n 2 } \right) to (C+Ig+Xn1) \left( C + I _ { g } + X _ { n 1 } \right) might be caused by


A) an appreciation of this nation's currency relative to the currencies of its trading partners.
B) a depreciation of this nation's currency relative to the currencies of its trading partners.
C) a decrease in this nation's price level relative to price levels abroad.
D) a rightward shift in this nation's 45-degree line.

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