The three reasons why the aggregate demand curve slopes downward are
a. the international substitution effect, the net exports effect and the interest rate effect.
b. the interest rate effect, the short run effect and the free rider effect
c. the net exports effect, the real balance effect and the short run effect
d. the real balance effect, the international substitution effect and the interest rate effect.
D
You might also like to view...
What are automatic stabilizers? How do they help stabilize real GDP?
What will be an ideal response?
Given the information in the table above
A) neither country has a comparative advantage in cloth. B) Home has a comparative advantage in widgets. C) Foreign has a comparative advantage in widgets. D) Home has a comparative advantage in both cloth and widgets. E) neither country has a comparative advantage in widgets.
Assume there are 75 transactions a year in an economy with a money supply of $300 . If the average value of each transaction is $20, then the velocity of money is
a. 1/2. b. 1 c. .2 d. 20.
Suppose the production of paved roadways can be represented as q = L0.5 + K0.5. Which of the following statements is (are) TRUE?
A) Labor is subject to diminishing marginal productivity in the short run. B) Labor and capital are imperfect substitutes. C) The isoquants for paved roadways are convex. D) All of the above.