Changes in interest rates affect all four components of aggregate demand
Indicate whether the statement is true or false
FALSE
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In the above figure, at the point where AD equals SAS
A) real GDP exceeds potential GDP. B) potential GDP exceeds real GDP. C) the economy is in a recession. D) the unemployment rate is zero.
Under conditions of perfect competition, AR and MR
a. are represented by a straight vertical line. b. diverge. c. are represented by a straight horizontal line. d. are represented by an upward sloping line.
What is the value of a newly issued 10-year bond with face value of $10,000 and no coupon payments? Assume the interest rate is 7 percent (0.07) per year
a. $0 b. $5,083.49 c. $10,000 d. $95,632.41 e. $100,000.00
If Country A is relatively abundant in labor and Country B is relatively abundant in capital, the Heckscher-Ohlin theory predicts that Country A will export relatively labor-intensive goods and Country B will export relatively capital-intensive goods.
Answer the following statement true (T) or false (F)