If the price level rises, the interest rate effect will cause investment:
A. to increase and the quantity of aggregate demand to decrease.
B. and the quantity of aggregate demand to decrease.
C. to decrease and the quantity of aggregate demand to increase.
D. and the quantity of aggregate demand to increase.
Answer: B
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What is the difference between an inflation-indexed Treasury bond, and a Treasury bond that is not indexed?
A) An inflation-indexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. B) A nonindexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. C) An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve, while a nonindexed Treasury can be purchased through a broker. D) An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return, while a nonindexed Treasury bond does not.
Nations specialize when they _____.
(A) Produce certain goods and services more efficiently than other nations. (B) Export more than they import. (C) Have few natural resources and are required to endure a trade deficit. (D) Import more than they export.
Foreign factories produce ________ of the shoes New Balance sells in the United States
A) none B) less than 15 percent C) roughly half D) about 75 percent
If exports rise and imports fall, then
a. GDP will increase b. GDP will decrease c. GDP may remain unchanged d. net exports will fall e. transfers will rise