The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption is known as the:
a. real balances effect.
b. interest rate effect.
c. foreign purchases effect.
d. income effect.
e. aggregate demand effect.
a
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Economic growth is defined as equal to the increase in
A) real GDP. B) population. C) the price level. D) the inflation rate. E) employment.
People:
A. always have enough information to make acceptable choices. B. always have access to complete information. C. never have access to complete information. D. often have good enough information to make acceptable choices.
The fraction of deposits that banks are required to keep is known as the
A) discount rate. B) required reserve ratio. C) deposit multiplier. D) money multiplier.
If the government provides free schooling for all students, an economist would say education is
a. a free good, having no cost. b. scarce even though its cost is paid by taxpayers rather than by students. c. an example of a good that is no longer scarce. d. all of the above.