According to the interest rate effect, as the price level decreases, households and firms' holdings of money ____, interest rates ____, investments ____, and the quantity RGDP demanded ____
a. increases, decrease, increase, decreases
b. increases, increase, increase, decreases
c. decreases, decrease, increase, increases
d. increases, increase, decrease, decreases
c
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
A Lorenz curve measures the ________ on the vertical axis
A) cumulative percentage of money income B) cumulative percentage of family wealth C) cumulative percentage of families D) demand of families on welfare
To economists, a game is:
A. any situation in which players pursue strategies designed to achieve their goals. B. a trivial pursuit that should not be used to analyze the economy or its actors. C. a way to simplify and minimize the true importance of situations like war. D. All of these statements are true.
What type of statement is a descriptive statement about how the world is?