Question: What will likely happen to the slope or position of the AD curve in the following circumstances? a. The exchange rate changes from fixed to
What will likely happen to the slope or position of the AD curve in the following circumstances?
a. The exchange rate changes from fixed to flexible.
b. A fall in the price level doesn't make people feel richer.
c. A fall in the price level creates expectations of a further-falling price level.
d. Income is redistributed from rich people to poor people.
e. Autonomous exports increase by 20.
f. Government spending decreases by 10.
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a The AD curve will be steeper because a change in the ... View full answer
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