1. Foreign exchange rates for the U.S. dollar change constantly as supply and demand conditions change.

True

False

2.When do U.S. exports tend to increase?

When U.S. prices are relatively low

When economic activity abroad is relatively low

When U.S. prices are relatively high

Both b and c.

3.Fiscal policy changes can shift the position of the aggregate demand curve.

True

False

4.The aggregate supply curve shows an inverse relationship between prices and real planned expenditure.

True

False

5.Money market mutual funds are an example of an asset that is highly liquid, but not counted as part of M2.

True

False

6.Use of the Internet makes it easy to find up-to-minute exchange rates for any pair of currencies that exist.

True

False

7.The aggregate supply curve shows the relationship between real GDP and the average price level.

Group of answer choices

True

False

8.Other things being equal, which of the following will cause the aggregate demand curve to shift to the right?

G

An increase in foreign demand for a country's exports

An increase in interest rates

An increase in net taxes

A decrease in consumer confidence