The real balance effect (wealth effect), the interest rate effect, and the net exports effect all help to explain the:
A. decrease in supply in the loanable funds market.
B. large federal budget deficit.
C. increase in short-run aggregate supply.
D. downward-sloping aggregate demand curve.
Answer: D
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If the MPC in an economy is 0.75 and aggregate expenditures increase by $5 billion, then equilibrium real GDP will increase by
A. $8.75 billion. B. $3.75 billion. C. $6.7 billion. D. $20 billion.
Many of the Founding Fathers considered the emancipation of slaves to be
(a) a necessary evil in overcoming the British during the war. (b) less important than the issues of whether blacks should be prevented from coming to the United States and whether freed slaves should be deported. (c) paramount in establishing the new nation on a solid ideological foundation. (d) a states' rights issue.
During the late 1990s, Japan experienced reductions in the GDP deflator. Given this information, we know with certainty that
A) real GDP fell during these periods. B) real GDP did not change during these periods. C) the overall price level in Japan decreased during these periods. D) both real GDP and the overall price level decreased during these periods.
The first important federal law passed to regulate monopolies in the United States was the
A) Cellar-Kefauver Act. B) Clayton Act. C) Federal Trade Commission Act. D) Sherman Act.