the economics of money, banking, and financial markets

702 #

© 2014 Pearson Canada Inc.#

26. 
    

    If Canadian university students decide that drinking Mexican-brewed beer helps one get
    noticed, net exports will tend to fall, causing aggregate demand to ____ and the ____
    curve to shift to the left, everything else held constant.
    A) fall; LM
    B) fall; IS
    C) rise; LM
    D) rise; IS
    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

    
    


27. 
    

    If young business professionals in Canada suddenly decide that driving German-made cars is
    an important status symbol, net exports will tend to ____ causing aggregate demand to
    ____, everything else held constant.
    A) fall; fall
    B) fall; rise
    C) rise; fall
    D) rise; rise
    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

    
    


28. 
    

    An autonomous depreciation of the Canadian dollar makes Canadian goods ____
    relative to foreign goods and results in a ____ in Canadian net exports, everything else held
    constant.
    A) cheaper; decline
    B) cheaper; rise
    C) more expensive; decline
    D) more expensive; rise
    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

    
    


29. 
    

    An autonomous appreciation of the Canadian dollar makes Canadian goods ____
    expensive relative to foreign goods which ____ net exports in Canada.
    A) less; decreases
    B) less; increases
    C) more; decreases
    D) more; increases
    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