When the price of most goods and services falls in a country, a fixed level of income and wealth will have higher purchasing power. This will increase the consumption and the aggregate quantity demanded. This situation represents the _____
a. interest rate effect
b. exchange rate effect
c. wealth effect
d. accelerator effect
c
Economics
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Differentiate between an open and a closed economy? Do you agree that the U.S. economy is more open among the advanced industrial countries in the world?
What will be an ideal response?
Economics
Liabilities of the commercial banking system include
A. reserves and loans. B. reserves and deposits. C. loans and deposits. D. deposits.
Economics
The effort used to coordinate the factors of production is a description of
A) entrepreneurshi
Economics
Long-run macroeconomic policy focuses on shifting the:
A. Aggregate supply curve to the left. B. Production possibilities curve outward. C. Aggregate demand curve to the left. D. Money supply curve to the right.
Economics