The decrease in investment that occurred as a result of banks being unwilling to lend to businesses after the collapse of the housing bubble caused aggregate:
A. demand to increase.
B. demand to decrease.
C. supply to increase.
D. supply to decrease.
B. demand to decrease.
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The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 20 units per day?
A) plant A B) plant B C) plant C D) plant D
The elasticity of supply is calculated by
A. determining the slope of the supply curve. B. dividing the absolute change in quantity supplied by the absolute change in price. C. dividing the percentage change in quantity supplied by the percentage change in price. D. dividing the percentage change in price by the percentage change in quantity demanded.
Over half of the increase in labor productivity in India since 1993 has been due to
A) the growth rate of the capital stock. B) total factor productivity growth. C) a decrease in the population. D) successful infrastructure investment.
Assume that the fixed exchange rate system of 1.1 euros = 1 dollar is below the equilibrium exchange rate of 1.3 euros = 1 dollar in a flexible exchange rate system. Then, at the fixed exchange rate, the dollar would be
a. undervalued and the euro would be overvalued. b. overvalued and the euro would be undervalued. c. revalued and the euro would be devalued. d. depreciated and the euro would be appreciated.