The interest rate effect, the real balance effect, and the foreign purchases effect suggest that the aggregate demand curve is
A. downward sloping.
B. vertical.
C. shaped as a backward L.
D. horizontal.
Answer: A
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Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone are
A) 50,000 and $100. B) 80,000 and $80. C) 60,000 and $50. D) 100,000 and $20. E) 40,000 and $20.
If a good has “snob appeal,” consumers may purchase less when the price falls.
Answer the following statement true (T) or false (F)
When does the domestic government gain the MOST revenue?
A) when it imposes a tariff B) when it imposes an import quota C) when it negotiates a voluntary export restraint D) The amount of revenue it gains is the same with a tariff and a voluntary export restraint.
Financial instruments used primarily to transfer risk would include all of the following, except:
A. an insurance contract. B. options. C. a futures contract. D. a bank loan.