A rise in the price level ________ the buying power of money and ________ the quantity of real GDP demanded
A) does not affect; does not change
B) raises; decreases
C) does not affect; increases
D) lowers; decreases
E) lowers; increases
D
You might also like to view...
Which of the following statements is CORRECT?
A) The United States produces more goods than services. B) The United States produces more services than goods. C) The United States produces more agricultural goods than manufactured goods. D) The United States produces an equal amount of goods and services.
Complete crowding out occurs when the
A) IS curve is horizontal. B) IS curve is vertical. C) LM curve is horizontal. D) LM curve is vertical.
If expected inflation is 12 percent and the publicly regulated electric utility company is legally limited to a 10 percent rate of return, then we should expect
a. increased investment by the utility. b. expansion of electric power generating capacity. c. future power shortages. d. excess investment by the electric utility.
The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers
a. True b. False Indicate whether the statement is true or false