The negative slope of the aggregate demand curve is caused by:

a. the real balances effect, the interest rate effect, and the price level effect.
b. the real balances effect, the money supply effect, and the net exports effect.
c. the interest rate effect, the net exports effect, and the real GDP effect.
d. the real balances effect, the interest rate effect, and the net exports effect.
e. the real balances effect, the interest rate effect, and the net export effect.


d

Economics

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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will be the equilibrium outcome of this game?

A. Apricot will develop a touch-screen t-shirt, and Macrosoft will not. B. Macrosoft will develop a touch-screen t-shirt, and Apricot will not. C. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt. D. Both Apricot and Macrosoft will develop a touch-screen t-shirt.

Economics

Building one large school may do more to promote school integration than constructing two separate schools

Indicate whether the statement is true or false

Economics

The quantity of money held in response to interest rates is the:

a. transactions motive for holding money. b. precautionary motive for holding money. c. speculative motive for holding money. d. unit-of-account motive for holding money.

Economics

If banks cannot lend all of their excess reserves,

a. the potential money multiplier increases b. the actual money multiplier decreases c. the potential money multiplier decreases d. the amount of loans by the bank increases e. demand deposits decrease

Economics