Figure 13.1
-Refer to Figure 13.1.In a flexible exchange rate regime,if an economy is experiencing external disequilibrium at point B,then the domestic currency will:
A) depreciate, shifting the IS curve to the right.
B) depreciate, shifting the IS curve to the left.
C) appreciate, shifting the IS curve to the left.
D) depreciate, shifting the LM curve to the right.

Question

Figure 13.1 
-Refer to Figure 13.1.In a flexible exchange rate regime,if an economy is experiencing external disequilibrium at point B,then the domestic currency will:
A) depreciate, shifting the IS curve to the right. 
B) depreciate, shifting the IS curve to the left. 
C) appreciate, shifting the IS curve to the left. 
D) depreciate, shifting the LM curve to the right.

Quizplus · Accepted Answer

The Answer of Figure 13.1 
-Refer to Figure 13.1.In a flexible exchange rate regime,if an economy is experiencing external disequilibrium at point B,then the domestic currency will:
A) depreciate, shifting the IS curve to the right. 
B) depreciate, shifting the IS curve to the left. 
C) appreciate, shifting the IS curve to the left. 
D) depreciate, shifting the LM curve to the right.

Figure 13.1 -Refer to Figure 13.1.In a Flexible Exchange Rate Regime,if an Rate