The aggregate demand curve is negatively sloped because a lower price level
A) reduces the real money supply.
B) increases the real money supply.
C) reduces aggregate income.
D) increases aggregate income.
B
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A country that experiences higher real interest rates than other countries would expect its currency to depreciate
Indicate whether the statement is true or false
C = $750 + 0.75(1 - 0.4)y i = $600 g = $500 nx = -$50
Use the above data to: a. Calculate the equilibrium level of GDP b. Calculate the value of the expenditure multiplier c. Find the change in the initial equilibrium GDP if autonomous investment increases by $75. d. Find the change in the initial equilibrium GDP if autonomous government purchases decreases by $50. e. Find the change in the initial equilibrium GDP if autonomous net exports increase by $10.
Government action can usually perfectly correct the market's shortcomings
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to result from a rising household debt/income ratio?
a. Household income will rise rapidly. b. Household consumption will fall as a share of income. c. Households will be in a better position to deal with unexpected events that force major adjustments. d. A larger share of household income will be required to meet interest payments on debt.