An example of an external force affecting the business cycle is
a. an inventory accumulation.
b. the multiplier effect.
c. a change in business attitudes toward investment.
d. a change in the discount rate by the Fed.
d. a change in the discount rate by the Fed.
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Which of the following will result in a decrease in demand for residential housing in the short run?
A) a decrease in the price of lumber B) an increase in the wages of carpenters C) a decrease in real household incomes D) a decrease in the prices of residential housing
If interest rates in Sweden go up relative to the rest of the world, the
A) demand for Swedish currency will fall. B) demand for Swedish currency will rise. C) supply of Swedish currency will fall. D) supply of Swedish currency will rise.
Butter and margarine are examples of
a. substitutes b. complements c. externalities d. inferior goods e. goods that are independent of each other
Which of the follow is not a property of the aggregate demand curve?
A. It shows the relationship between the overall price level and the level of total demand. B. The aggregate demand curve slopes downward. C. It shows the relationship between the overall price level and level consumption. D. It shows the price level on the vertical axis and output on the horizontal axis.