The real-balances effect on aggregate demand suggests that a:
A. Lower price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending
B. Lower price level will decrease the real value of many financial assets and therefore cause an increase in spending
C. Lower price level will increase the real value of many financial assets and therefore cause an increase in spending
D. Higher price level will increase the real value of many financial assets and therefore cause an increase in spending
C. Lower price level will increase the real value of many financial assets and therefore cause an increase in spending
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Total costs:
A. are fixed costs plus variable costs. B. include explicit and implicit costs. C. increases as the firm increases output. D. All of these are true.
Which of the following is true?
What will be an ideal response?
The World View article "U.S. Slaps China with Huge Anti-Dumping Tariffs" says new tariffs will be imposed on steel from China, and
A. Chinese consumers will benefit. B. U.S. steel producers will benefit from the tariff. C. U.S. steel distributors will gain from the tariff. D. Consumers will benefit from this U.S. trade policy.
One way fiscal policy affects aggregate demand is:
A. directly through tariffs. B. directly through government spending. C. directly through taxation. D. All of these are true.