CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

An appreciation of the U.S. dollar would ______ (increase, decrease, not affect) aggregate demand and an increase in the real interest rate would ______ (increase, decrease, not affect) aggregate demand.
A. increase; decrease
B. decrease; increase
C. decrease; decrease
Explanation: An appreciation of the dollar would make U.S. goods and services more expensive to foreigners and would reduce exports. An increase in the real interest rate would depress domestic investment spending and spending on consumer durables such as automobiles and refrigerators. Spending on U.S. exports, investment spending, and consumer spending are components of aggregate demand.

User Contributed Comments 1

User Comment
myanmar not effect is a good hint in the question *satiric mode off*
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