The interest rate effect suggests that investment spending and planned aggregate expenditures fall when the general price level rises
a. True
b. False
Indicate whether the statement is true or false
True
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In the new classical model, an anticipated increase in the money stock would cause
a. the price level and level of real output to rise. b. the price level to rise with no effect on real output. c. real output to rise with no effect on the price level. d. no change in the price level or level of real output.
Which approach to calculating GDP is computed using compensation of employees, rental income, profits, net interest, indirect business taxes, and depreciation?
a. The expenditure approach. b. The income approach. c. The product-market approach. d. The circular-flow approach.
Gross national product in terms of the income method is equal to national income plus indirect business taxes minus the capital consumption allowance
a. True b. False Indicate whether the statement is true or false
Other things equal, when Europeans want to buy more grains from the United States:
a. U.S. imports will increase. b. European exports will increase at every level of domestic income. c. U.S. exports will increase at every level of domestic income. d. the U.S. balance of payments will show a deficit. e. U.S. consumption spending will fall.