9. The locus of points that show the combination of interest rate and the level of output at which the foreign sector is in equilibrium is termed as (1 mark) A. Balance of payment B. IS curve C. Aggregate demand schedule D. None of the above 10. When the domestic value of a foreign currency appreciates, the domestic currency is said to have A. As well appreciated (1 mark) B. Depreciated C. Gained more value D. None of the above 1 1. An increase in price holding money stock constant will result in (1 mark) A. Appreciation of real money balance B. Depreciation of real money balance C. Constant money balance D. None of the above 12. In a situation where investment is relatively interest inelastic, a relatively large increase in interest rate causes (1 mark) A. More than a proportionate increase in investment B. Less than a proportionate decrease in investment C. Less than a proportionate increase in investment D. None of the above 13. Under fixed exchange rates, fiscal policy is more powerful in moving output than it is under flexible exchange rates. True/False (1 mark) 14. A fiscal contraction always reduces output. True/False (1 mark) 15. The slope of the transformation curve is given by MRPTxy. True/False (1 mark)