Other things the same, as the price level falls, the real value of a dollar
a. rises, and interest rates rise.
b. rises, and interest rates fall.
c. falls, and interest rates rise.
d. falls, and interest rates fall.
b
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The way one unit of a firm relates to another in the same firm is referred to as being
A) upstream or downstream. B) latitudinal or longitudinal. C) left or right. D) competitor or conspirator.
According to the law of demand, a demand curve
A. Has a negative slope. B. Has a positive slope. C. Exceeds the economy's ability to produce. D. Is a horizontal or flat line.
A rise in interest rates will cause
A. Investment spending to remain constant. B. A decline in investment spending. C. A rise in investment spending. D. Investment spending to be eliminated from the economy.
The Fed in the U.S
A) allows a flexible exchange rate, though their actions can impact the exchange rate. B) has no influence on the exchange rate. C) sells U.S. dollars to China in an attempt to depreciate the U.S. dollar. D) alternates between a flexible, fixed, and crawling peg exchange rate policy depending on economic conditions.