Use the DD-AA model to examine the effects of a one-time rise in the foreign price level, P. If the expected future exchange rate falls immediately in proportion to P (in line with PPP), show that the exchange rate will also appreciate immediately in proportion to the rise in . If the economy is initially in internal and external balance, will its position be disturbed by such a rise in P. If the economy is initially in internal and external balance, will its position be disturbed by such a rise in P?

C. piggy bankbecause everything has interest rates over a period of time whereas a personal keeping of money has no other interaction therefore no interest rates.

Many things could be possible

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.