In the classical model, the interest rate will adjust to equate
A) consumption spending with real GDP.
B) saving with investment.
C) export spending with import spending.
D) the economic growth rate with the growth rate of import spending.
B
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Tim Tupper's term paper-typing business is a perfectly competitive firm in long-run equilibrium. Which of the following does not describes the firm's situation?
a. It will be minimizing average total cost. b. It will be charging a price equal to marginal cost. c. It will be charging a price equal to average total cost. d. It will be earning a normal profit. e. Entrepreneurs outside the industry will be eager to enter.
Which type of statement - positive or negative - can be evaluated by analyzing data alone?
Aggregate demand is a ____ rather than a ____.
A. fixed number; concept B. schedule; fixed number C. set number; concept D. government aggregate; private aggregate
An initial increase in investment spending will generate:
a. More of an increase in income than the initial increase because of the multiplier effect b. Less of an increase in income than the initial increase because of the multiplier effect c. Less of an increase in income than the initial increase because of the net export effect d. More of an increase in income than the initial increase because of the net export effect