A change in which of the following variables will have no direct effect on the level of domestic demand?
A) domestic income
B) the real exchange rate
C) government spending
D) the interest rate (r)
E) none of the above
B
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Refer to Figure 24-2. Ceteris paribus, an increase in the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Investment, as defined in aggregate expenditure calculations, consists of purchasing all of the following except?
a. new factories b. new housing c. new stocks d. new equipment
During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment
A) increased the natural rate of unemployment. B) decreased the natural rate of unemployment. C) had no effect on the natural rate of unemployment. D) could have increased or decreased the natural rate of unemployment.
When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint.
Answer the following statement true (T) or false (F)