The slope of the investment demand function indicates how sensitive investment

The slope of the investment demand function indicates

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33.The slope of the investment demand function indicates how sensitive investment is to changes in real interest rates. The 'flatter' the investment demand function, the less sensitive investment is to changes in the real rate of interest, all else constant.A) TrueB) FalsePoints Earned:1.0/1.0Correct Answer(s):False34.A rise in imports, all else constant, will increase net exports.Points Earned:1.0/1.0Correct Answer(s):False35.
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If the US is growing faster than the rest of the world, then all else constant, the trade deficit will widen (get more negative assuming we were running a trade deficit to begin with).Points Earned:1.0/1.0Correct Answer(s):True36.If the inflation rate rises in China so that it exceeds that of the US, then net exports for the US should increase, all else constant.Points Earned:1.0/1.0Correct Answer(s):True37.If the exchange rate between the US dollar and Japanese yen changes from $1 = 100 yen to $1 = 80 yen, then US exports to Japan will become more expensive to Japanese importers.A) TrueB) FalsePoints Earned:1.0/1.0Correct Answer(s):False38.We argued that cash flow (CF) increased during the Great Recession and thus, had a positiveeffect on investment.
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Points Earned:1.0/1.0Correct Answer(s):False39.In a consumption function with income (Y) on the horizontal axis and consumption (C) on thevertical axis, a rise in stock market wealth, all else constant, will result in a movement along the consumption function.Points Earned:1.0/1.0Correct Answer(s):False40.The stronger the US dollar is relative to the rest of the world, all else constant, the larger thenet exports in the US.Points Earned:0.0/1.0Correct Answer(s):False41.A fall in the tax rate on capital will cause the aggregate expenditure curve to shift up and the aggregate demand curve to shift to the left, all else constant.A) TrueB) FalsePoints Earned:1.0/1.0Correct Answer(s):False
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42.One reason that the aggregate demand curve slopes downward is that when prices rise, say in the US, the relative price of imports fall and thus, US citizens substitute away from domestically produced goods toward imported goods and thus, GDP in the US will fall (all else constant).Points Earned:1.0/1.0Correct Answer(s):True43.Suppose the value of the US dollar changes from $1 = 1.2 euros to $1 = 1.30 euros. This being the case, imports from the US to Europe, have become more expensive to European citizens, all else constant.Points Earned:0.0/1.0Correct Answer(s):True
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