A fall in the price of bonds may lead to a(n):
A) decrease in aggregate demand and the price level due to a decrease in net exports.
B) decrease in aggregate demand and an increase in the price level due to a decrease in investment.
C) increase in aggregate demand due to an increase in net exports.
D) increase in aggregate demand due to an increase in investment.
Ans: A) decrease in aggregate demand and the price level due to a decrease in net exports.
You might also like to view...
Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals
A) $0. B) $1. C) $2. D) $3.
The shutdown point occurs at the level of output for which the ________ is at its minimum
A) marginal cost B) average variable cost C) average fixed cost D) total cost
If there is no change in the quantity of currency, the purchase of $100 million of Treasury securities by the Federal Reserve will cause reserves at banks to
A) decrease by $100 million. B) increase by $100 million. C) decrease by less than $100 million. D) increase by less than $100 million.
If the quantity demanded of a public good is greater than the quantity supplied,
a. an excess quantity demanded emerges, which could be eliminated (corrected) by the government decreasing taxes to allow people to buy more of the good b. it is proof that market failure exists c. it is proof that government failure exists d. an excess quantity demanded emerges, which could be eliminated (corrected) by the government increasing taxes to provide more of the good e. the market will create the supply to bring the market for the public good into equilibrium