Figure 6-1
-In the figure above, an increase in autonomous exports will cause the ________ dollars to ________ and the exchange rate to ________, ceteris paribus.

Question

Figure 6-1 
-In the figure above, an increase in autonomous exports will cause the ________ dollars to ________ and the exchange rate to ________, ceteris paribus.

Quizplus · Accepted Answer

An increase in autonomous exports increases the demand for dollars, shifting the demand curve to D2, which can lead to a fall in the exchange rate if the supply remains constant.

Figure 6-1 -In the Figure Above, an Increase in Autonomous Exports Will