Decrease in the real interest rate will ________ the expenditure curve:
A) decrease.
B) increase.
C) not change.
D) none of the above.
B
You might also like to view...
Which of the following is likely to shift the credit demand curve of an automobile manufacturer to the right, assuming all else equal?
A) An increase in the real interest rate B) A plan to increase production and expand to newer markets C) A plan to decrease production and exit from existing markets D) A decrease in the real interest rate
Relative to a no-international-trade initial situation, if the United States imported wine from other countries with a comparative advantage in wine production, the U.S. domestic price of wine:
a. would rise, but domestic output would fall. b. would fall, but domestic output would rise. c. would rise, and domestic output would rise. d. would fall, and domestic output would fall.
Any change in spending from ________ will also change aggregate demand.
A. households B. firms C. the foreign sector D. All of these
Collin has lost his job with a telemarketing company, which has moved its operation to India. Collin is considered
A. frictionally unemployed. B. a discouraged worker. C. seasonally unemployed. D. structurally unemployed.