Answer to Question #107144 in Macroeconomics for Sthabile

Question

A.in the Keynesian model,suppose a depreciation of the South African rand against the US dollar leads to an increase in exports. What will happen to the aggregate spending curve if imports remain unchanged 1.it will stay the same 2.it will shift upwards 3it will shift downwards 4the slope becomes flatter B.which of the following will increase the size of multiplier 1.an increase in government spending 2.an increase in marginal propensity to consume 3.an increase in the marginal propensity to save 4.an increase in autonomous spending

Answer 1

A. 1. it will stay the same 

B. 2. an increase in marginal propensity to consume