An appreciation of the nations currency leads

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a. The economy is stable with unemployment at 6% and inflation at 2%. (For the following scenarios, assume the economy starts at this

b. A decrease in interests rats causes investment to increase. Explain:

c. An appreciation of the nation's currency leads foreigners to demand less of the country's exports. Explain:

d. The discovery of large reserves of natural gas causes energy prices to decline. Explain:

e. An earthquake strikes, destroying much of the nation's transportation infrastructure. Explain:

f. Home prices decline, harming consumer and investor confidence. Explain:

g. The government reduces payroll taxes by 2% for all households. Explain:

h. Fear over the national debt forces government to reduce its budget deficit. Explain:

i. The EPA requires all the nation's producers to adhere to strict new greenhouse gas emissions standards. Explain:

j. Looser immigration laws increase the available supply of labor in the country. Explain:

k. Rapid economic growth abroad boosts demand for the nation's output. Explain:

l. Create your own scenario:

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