A fall in real interest rates will reduce aggregate demand.
Answer the following statement true (T) or false (F)
False
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On the graph above, assuming that G = 0 and NX = 0, the labeled point at which saving is lowest is point ________
A) A B) B C) G D) H E) not inferable from the information given
Under a progressive tax system: a. only the rich are taxed
b. higher marginal taxes are imposed on higher incomes. c. lower taxes are imposed on everyone. d. everyone pays the same percent of their income for tax.
Which of the following is not consistent with a self-regulating economy?
A) flexible prices B) flexible wages C) a labor market in which wages fall if there is a surplus D) a labor market in which wages rise if there is a shortage E) none of the above (all are consistent with a self-regulating economy)
The __________ believe that the supply of money should be increased at a constant rate each year.
Fill in the blank(s) with the appropriate word(s).