When autonomous expenditure increases, ________.

Select one:

a.the AE curve becomes less steep.

b.there is a movement down along the AE curve.

c.the AE curve shifts downward.

d.the AE curve become more flat.

e.the AE curve shifts upward gradually

An increase in the interest rate in Fiji compared to the interest rate in New Zealand will

Select one:

a.increase the Fijian interest rate differential.

b.increase the demand for NZ dollars for long period of time.

c.shift the demand curve for Fijian dollars rightward.

d.increase the demand for NZ dollars for short period of time.

e.Both answers A and C are correct.

In anAS/ADmodel, lowering the Overnight Policy Rate by Reserve Bank due to COVID-19 Pandemic initially shifts the

Select one:

a.AD curve leftward.

b.short -run AS curve.

c.long-run AS curve leftward.

d.long-run AS curve rightward.

e.AD curve rightward.