The relationship in the above figure suggests that when the interest rate is 5 percent
A) a decrease in income will be associated with a decrease in expenditures.
B) a decrease in income will be associated with an increase in expenditures.
C) an increase in income will be associated with a decrease in expenditures.
D) there is no relationship between expenditures and income.
A
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The four components of aggregate expenditure (AE) are:
A. consumption, internet, government, and capital spending. B. consumption, investment, government, and capital spending. C. consumption, investment, government, and net export spending. D. consumption, investment, exports, and imports.
Excess reserves
A. Are loans made at above market interest rates B. Are reserves banks keep above the legal requirement C. Are reserves banks keep to meet the reserve requirement
Government changes in interest rates to regulate the economy are part of:
A. monetary policy. B. fiscal policy. C. debt policy. D. liability policy.
An example of tangible capital is
A. an idea for a new business. B. the goodwill a firm has established through advertising. C. a restaurant's unsold, unopened cans of soda. D. knowledge of how to program a computer.