Use the following list of factors that are related to the aggregate demand curve to answer the next question.1) Real-Balances Effect2) Household Expectations3) Interest-Rate Effect4) Personal Income Tax Rates5) Profit Expectations6) National Income Abroad7) Government Spending8) Foreign Purchases Effect9) Exchange Rates10) Degree of Excess CapacityWhich of the above factors best explain the downward slope of aggregate demand curve?
A. 7, 9, and 10
B. 4, 6, and 7
C. 2, 4, and 6
D. 1, 3, and 8
Answer: D
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If the interest rate increases from 6 percent to 10 percent per year, each $100 saved will earn
a. $4 per year more than before b. $6 per year more than before c. $10 per year more than before d. $16 per year more than before e. $60 per year more than before
The first antitrust legislation was passed in the United States during the late 1970s in response to the massive OPEC oil-price shocks and the Penn-Central Railroad cartel. Prior to this time, government authorities were forced to use nuisance laws to restrict anti-competitive business activity
Indicate whether the statement is true or false
Compare the composition of U.S. output in the year 1900 with its composition in the year 2000.
What will be an ideal response?
Which of the following is FALSE about intraindustry trade?
A) Intraindustry trade creates gains from trade. B) Intraindustry trade is due to comparative advantage. C) Intraindustry trade may involve heightened competition and lower prices for consumers. D) Intraindustry trade increases consumer choice.