Which of the following sequences results from a decrease in the price level?
a. the money demand curve shifts leftward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a rightward movement along the aggregate demand curve.
b. the money demand curve shifts rightward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward, and there is a rightward movement along the aggregate demand curve.
c. the money demand curve shifts leftward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a leftward movement along the aggregate demand curve.
d. the money demand curve shifts rightward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a movement upward along the aggregate demand curve.
e. the money demand curve shifts leftward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts upward, and there is a leftward movement along the aggregate demand curve.
A
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Indicate whether the statement is true or false
In an industry with free entry and exit, positive economic profit:
A. can never occur. B. cannot be sustained indefinitely. C. can be sustained indefinitely. D. indicates a market failure.
Firms in perfectly competitive markets who wish to maximize profits should produce:
A. less as long as marginal cost is less than marginal revenue. B. more as long as marginal cost is greater than marginal revenue. C. at the level where marginal cost equals marginal revenue. D. All of these are true.
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A. greater control over our economy. B. less control over our economy. C. neither greater control nor less control over our economy.