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q21&22 thanks!! 21. The slope of the DD curve may be explained as follows: a. DD has a positive slope because, a rise in B

q21&22 thanks!!

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21. The slope of the DD curve may be explained as follows: a. DD has a positive slope because, a rise in B switches expenditures towards domestic output, creating excess demand. To restore equilibrium in the goods market output must increase, b. DD has a positive slope because, a rise in E switches expenditures away from domestic output, creating excess demand. To restore equilibrium in the goods market, output must increase. c. DD has a positive slope because, a rise in output worsens the current account and decreases demand for domestic output. To restore equilibrium in the goods market, E must increase. . Both (a) and (c) e. . Both (b) and (c) 22. Which one of the following statements is the most accurate . All else equal, equilibrium in asset markets is attained in the short run when, in response to a fall in output, domestic currency appreciates because the interest rate falls. b.domestic currency appreciates because the interest rate rises. c. domestic currency depreciates because the interest rate rises. d. domestic currency depreciates because the interest rate falls

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