If the Federal Reserve raises the real interest rate for any given inflation rate ________
A) investment spending would increase
B) it would lead to higher consumption spending and net exports
C) the aggregate demand curve would shift to the left
D) all of the above
E) none of the above
C
You might also like to view...
Which of the following multinational firms would not be defined as strictly an American corporation?
A. Apple. B. Ford Motor Company. C. Honda Motor Company. D. Nissan Motor Company. E. All of these would not be defined as strictly an American corporation.
The above table shows Tammy's total utility from videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is
A) 450. B) 1280. C) 1150. D) 1200.
One advantage of a tariff over a quota, from the perspective of the nation imposing it, is that a tariff
a. decreases the domestic price b. increases the foreign price c. increases the quantity of imports d. decreases the quality of imports e. raises tax revenue
According to the theory of liquidity preference, if the interest rate rises
a. people want to hold more money. This response is shown by moving to the right along the money demand curve. b. people want to hold more money. This response is shown by shifting the money demand curve right. c. people want to hold less money. This response is shown by moving to the left along the money demand curve. d. people want to hold less money. This response is shown by shifting the money demand curve left.