Question
Why does an appreciating currency reduce aggregate demand?
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Answer
Exports fall, imports rise, and net exports decline.
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Question
How does the World Bank differ from the IMF?
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Answer
It funds long-term development projects rather than crisis lending.
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Question
What does an HHI above 2,500 indicate about a market?
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Answer
A highly concentrated market.
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Question
Why might a negative output gap lead policymakers toward expansionary policy?
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Answer
It indicates slack and unemployment above NAIRU.
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