Refer to the graph above. Which of the following changes will shift AD1 to AD2?
A) A cut in personal and business taxes
B) An increase in the value of the dollar relative to other currencies
C) A shrinkage in the value of stocks and other financial assets
D) An increase in real interest rates
Correct Answer:
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Q17: When the general price level in our
Q18: Q19: Which of the following effects best explains Q20: The foreign purchases, interest rate, and real-balances Q21: Changes in the national incomes of our Q23: When the excess capacity of business expands Q24: If the dollar appreciates in value relative Q25: Which of the following events would most Q26: When the dollar appreciates relative to foreign Q27: Which of the following would not shift![]()
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