An increase in the aggregate expenditures schedule:
A. Increases aggregate demand by the amount of the increase in aggregate expenditures only
B. Increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier
C. Decreases aggregate demand by the amount of the increase in aggregate expenditures
D. Decreases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier
B. Increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier
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Capital refers to
A. manufactured goods used to produce other goods or services. B. the work and time for which employees are paid. C. natural resources as well as "man"-made goods. D. the person who assembles the needed resources to start a business.
Suppose the only characteristic of beer that a consumer cares about is alcohol content. Currently, Bud Light and Miller Lite both have the same alcohol content. a. Illustrate the consumer's indifference curves in a graph with ounces of Miller Lite on the horizontal and ounces of Bud Light on the vertical axis. b. Suppose that the producers of Bud Light lower the price of Bud Light. How will your answer to (a) change?
c. Suppose that the producers of Bud Light lower the alcohol content of their beer by 50%. How will your answer to (a) change? d. Since we identify tastes with indifference maps, would you say that the consumer's tastes have changed in (b) or (c)? e. How could we change the units we use to measure Miller Lite in order to get the indifference map in (c) to again look like the one in (a)? What will be an ideal response?
The quantity of money demanded is positively related to the interest rate
Indicate whether the statement is true or false
We know how many dollars banks create using the:
A. money multiplier. B. federal funds. C. interest rate. D. demand deposits.