Exhibit 24-2 
-Which of the following is a valid explanation of the expenditure line shift from E1 to E2 in Exhibit 24-2?
A) A decline in government purchases
B) An increase in taxes
C) An increase in the interest rate
D) A decline in the value of the dollar
E) A fall in world interest rates
Correct Answer:
Verified
Q49: If net exports become less sensitive to
Q50: The positive correlation between real interest rates
Q51: If inflation increases, the central bank acts
Q52: Aggregate expenditures depend on the nominal interest
Q53: When the rate of inflation is low
Q55: When inflation rises, the Federal Reserve will
A)act
Q56: In the United States, inflation is the
Q57: Ceteris paribus, a rise in U.S. interest
Q58: If the economy is in a recession,
Q59: Exhibit 24-2 
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