Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate? 1.The AA curve shifts downwards due to reduction of money supply. 2.a fall in aggregate output 3.depreciation in home country's currency 4.The DD curve shifts to the left due to reduction of aggregate demand. 5.a fall in the home interest rate

Principles of Economics (MindTap Course List)
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ISBN:9781305585126
Author:N. Gregory Mankiw
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Chapter31: Open-Economy Macroeconomics: Basic Concepts
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Which of the following is NOT a result of
a temporary fall in foreign demand on
one country's exports under floating
exchange rate?
1.The AA curve shifts downwards due to
reduction of money supply.
2.a fall in aggregate output
3.depreciation in home country's
currency
4.The DD curve shifts to the left due to
reduction of aggregate demand.
5.a fall in the home interest rate
Transcribed Image Text:Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate? 1.The AA curve shifts downwards due to reduction of money supply. 2.a fall in aggregate output 3.depreciation in home country's currency 4.The DD curve shifts to the left due to reduction of aggregate demand. 5.a fall in the home interest rate
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