Question :
21. As the international value of the dollar rises, AS shifts
21. As the international value of the dollar rises, AS shifts outward and AD shifts inward.
a. True
b. False
22. If the dollar depreciates, both the aggregate demand curve and the aggregate supply curve shift inward.
a. True
b. False
23. A currency depreciation is usually inflationary.
a. True
b. False
24. The depreciation of the Japanese yen in 2002 would ease their problems with regard to recession.
a. True
b. False
25. An appreciation of the Japanese yen would shift the Japanese aggregate demand curve inward.
a. True
b. False
26. Interest rate increases lead to currency appreciation and increases in net exports.
a. True
b. False
27. International capital flows tend to strengthen the effects of interest rate changes on aggregate demand.
a. True
b. False
28. A rise in the domestic interest rate leads to capital outflows and makes the currency depreciate.
a. True
b. False
29. A currency appreciation reduces aggregate demand and increases aggregate supply.
a. True
b. False
30. An expansionary fiscal policy makes the exchange rate appreciate.
a. True
b. False
