[ECONOMICS]

Question 1: If a country's exchange rate increases, its expenditures function will:

a) become steeper

b) become flatter

c) shift up

d) shift down

Question 2: Given AE = $1,000 + 0.8Y, when income equals $6,000, autonomous expenditures will be:

f) $500

g) $1,000

h) $4,800

j) $5,800

Question 3: Dynamics in the macro policy model and the multiplier model are the same when:

a) the price level is fixed

b) the price level is semi-flexible

c) the price level is flexible

d) output is flexible