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yuradex [85]
3 years ago
13

A fall in the value of the dollar againstother currencies makes U.S. final goods and services cheaper toforeigners even though t

he U.S. aggregate price level stays thesame. As a result, foreigners demand more American aggregateoutput. Your study partner says that this represents a movementdown the aggregate demand curve because foreigners are demandingmore in response to a lower price. You, however, insist that thisrepresents a rightward shift of the aggregate demand curve. Who isright? Explain.

Business
1 answer:
Mars2501 [29]3 years ago
5 0

Answer: I am right, the increased demand represents a rightward shift of the aggregate demand curve.

Explanation:

The increase in aggregate demand by foreigners occurred as a result of a fall in the value of the US dollars and aggreagrate price level stayed the same. Therefore, the change in aggregate demand didn't occur as a result of a change in price.

If agregrate demand changed as a result of a change in the aggregate price levels, there would be a change in quantity demanded and a movement along the demand curve.

It's only a change in price that result results in a movement along the aggregate demand curve.

Other factors that leads to a change in demand either shifts the aggregate demand curve to the left or to the right.

Therefore, an increase in aggregate demand as a result of the fall in value of US dollars causes the aggregate demand curve to shift to the right.

The shift in the aggregate demand curve to the right shows that demand has increased but aggregate price hasn't changed.

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6 0
3 years ago
Which of the following is a correct description of the crowding-out effect of deficit spending?
borishaifa [10]

Answer:

the options are missing, so I looked for them:

a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.

d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.

the answer is:

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

Explanation:

The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.  

5 0
3 years ago
Confronted with the same unit cost data, a monopolistic producer will charge Group of answer choices
dsp73

Answer:

a higher price and produce a smaller output than a competitive firm

Explanation:

A monpolistically competitive firm is a firm that :

1. Sells differentiated products from other firms in the industry.

2. Has many buyers and sellers

3. Is a price maker

4. Has no barrier to entry or exist of firms

An example of a monpolistically competitive firm is a resturant.

A competitive firm is a firm that:

1. Sells identical goods with other firms in the industry.

2. Is a price taker . Prices are set by forces of demand and supply

3. Has many buyers and sellers

4. There are no barriers to entry or exist of firms.

When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.

While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.

A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.

5 0
3 years ago
The number of shares that a corporation's incorporation document allows it to sell is referred to as
SashulF [63]

The number of shares that a corporation's incorporation document allows it to sell is referred to as authorized shares.

<h3>What is a Corporation?</h3>

This refers to a business entity that has a group of members who acts together for a set goal.

Hence, we can see that when it comes to the selling of stocks by the corporation, there is a limit of shares to sell and this is known as authorized shares.

Read more about stocks here:

brainly.com/question/25572872

6 0
2 years ago
The Hutters filed a joint return for 2019. They provide more than 50% of the support of Carla, Ellie, and Aaron. Carla (age 18)
sergey [27]

Answer:

Hutters can be claim two dependents

Explanation:

we know here that Hutters can be claim two dependents

because here given Carla and Ellie as Aaron meets neither the residency nor citizenship requirement

but Carla is a qualifying relative and is under the age of 24

but Ellie is above 24 but is a qualifying relative as scholarship is non-taxable

so

we can say that answer is two

8 0
3 years ago
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