When the price level falls
a. the interest rate rises, so the quantity of goods and services demand rises.
b. the interest rate rises, so the quantity of goods and services demand falls.
c. the interest rate falls, so the quantity of goods and services demand rises.
d. the interest rate falls, so the quantity of goods and services demand falls.
c
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When comparing perfect competition and monopoly, a major assumption made is that
A) the monopolist faces a downward sloping demand curve. B) consumers only care about the price of the good and not whether the seller is a monopoly or not. C) the costs of production are the same under monopoly as under perfect competition. D) the monopolist can make an above normal rate of return.
Which of the following characteristics does not fit a perfectly competitive market?
A. Numerous small firms B. Identical products produced by all firms in the market C. Each individual firm has a small amount of control over the market price D. Ease of entry and exit from the market
Suppose a U.S. importer purchases "Mexican Oaxaca" cheese for $500 . If the present exchange rate is Mexican peso (MXP) 10 per U.S. dollar, and the MXP appreciates 10 percent against the U.S. dollar between the date of purchase and the date of payment, then the peso value of the invoice when payment is due is:
a. MXP 500. b. MXP 550. c. MXP 4,500. d. MXP 5,500. e. MXP 4,450.
Figure 10.5 Federal Outlays, Receipts, and Surplus/Deficit, as a Percent of GDP, 1980-2011
What will be an ideal response?