1 If The Real Exchange Rate In The United States Is Below The Equilibrium Leve

1 – If the real exchange rate in the United States is below the equilibrium level, _____.

–the demand for dollars by foreigners will balance the supply of dollars from Americans

–there will be a shortage of dollars

–​the quantity of dollars supplied will exceed the quantity of dollars demanded

–the value of dollar will fall

2 – A decrease in the tax rates in an economy will cause a:

–rightward shift of the aggregate demand curve if the crowding-out effect is equal to the size of the tax multiplier.

–​leftward shift of the aggregate demand curve if the crowding-out effect is smaller than the size of the tax multiplier.

–​rightward shift of the aggregate demand curve if the crowding-out effect is larger than the size of the tax multiplier.

–leftward shift of the aggregate demand curve if the crowding-out effect is larger than the size of the tax multiplier.

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