Which of the following factors can change continually in such a way as to bring about continued increases in aggregate demand?
A) autonomous consumption
B) autonomous investment
C) government spending
D) the money supply
E) all of the above
D
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Answer the following statements true (T) or false (F)
1. The average product can be calculated for any unit of input by dividing the total product by the marginal product. 2. If all inputs are increased by 25 percent and output by 35 percent, increasing returns to scale exist. 3. Implicit cost is an opportunity cost of doing business. 4. Opportunity cost and implicit cost are both explicit costs. 5. Marginal cost is the change in total cost that results from producing one less or one more unit of output.
Which of the following is not one of the basic economic questions that all economies must answer?
What will be an ideal response?
The definition of M2 includes:
A. hard money and savings account balances. B. cash and checking account balances. C. cash, checking account, and savings account balances. D. cash, checking accounts, savings accounts, and other financial instruments where money is locked away for a specified period of time.
How did the actions the Fed took on interest rates in 2005–2006 affect people with adjustable-rate mortgages?
a. Their payments decreased. b. Their payments increased. c. The government assumed their payments. d. Their payments could not be changed.