When the price level increases there is ________ movement along the aggregate demand curve because the buying power of money ________
A) a downward; increases
B) an upward; increases
C) an upward; decreases
D) no; does not change
E) a downward; decreases
C
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Which of the following statements is false?
A. Greater distance reduces the likelihood of migration B. Greater stocks of human capital result in greater personal productivity and earnings C. The majority of international migrants move to countries relatively close to their home countries D. Implicit costs of migrating are not affected by distance
In an open economy with a given level of real interest rates and risk, an increase in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. increase; decrease B. increase; increase C. decrease; increase D. decrease; decrease
If the index of leading indicators and other forecasting devices suggested that the economy is moving into an inflationary boom, activists' economic policy would call for
a. a decrease in money supply growth and a tax increase. b. an increase in money supply growth and a shift toward a budget deficit. c. an increase in money supply growth and a tax decrease. d. a continuation of the policies already in place.
When a bank obtains a loan from the Fed, it follows that the
A) simple deposit multiplier rises. B) bank (itself) can create more loans. C) bank's reserves decrease. D) bank's reserves remain unchanged. E) none of the above