the economics of money, banking, and financial markets

704 #

© 2014 Pearson Canada Inc.#

34. 
    

    A shift in tastes toward Canadian goods ____ net exports in Canada and causes the IS
    curve to shift to the ____ in Canada, everything else held constant.
    A) decreases; right
    B) decreases; left
    C) increases; right
    D) increases; left
    Answer: C
    Diff: 2 Type: MC Page Ref: 553
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


35. 
    

    A shift in tastes toward foreign goods ____ net exports in Canada and causes the IS
    curve to shift to the ____ in Canada everything else held constant.
    A) decreases; right
    B) decreases; left
    C) increases; right
    D) increases; left
    Answer: B
    Diff: 2 Type: MC Page Ref: 553
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


36. 
    

    A depreciation of the Canadian dollar makes Canadian goods cheaper relative to foreign
    goods, resulting in a ____ in net exports in Canada and a ____ shift of the IS curve in
    Canada, everything else held constant.
    A) fall; leftward
    B) rise; leftward
    C) fall; rightward
    D) rise; rightward
    Answer: D
    Diff: 2 Type: MC Page Ref: 553
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


37. 
    

    An appreciation of the Canadian dollar makes foreign goods cheaper relative to Canadian
    goods, resulting in a ____ in net exports in Canada and a ____ shift of the IS curve in
    Canada, everything else held constant.
    A) fall; leftward
    B) rise; leftward
    C) fall; rightward
    D) rise; rightward
    Answer: A
    Diff: 2 Type: MC Page Ref: 553
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output