Which one of the following does NOT explain why the aggregate demand curve is downward sloping?
A. The loanable funds effect
B. The real balances effect
C. The foreign purchases effect
D. The interest rate effect
A. The loanable funds effect
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Which of the following describes the benefits of specialization in a free market?
If the U.S. economy was close to full employment in May? 2017, why was the? U-6 measure of the unemployment rate still as high as? 8.6?
What will be an ideal response?
Tariffs create deadweight losses and destroy wealth, whereas quotas increase cooperative surplus and create wealth
Indicate whether the statement is true or false
As the nominal interest rate increases ________
A) it becomes more costly to hold money instead of bonds B) the quantity of money demanded falls C) the opportunity cost of holding money rises D) all of the above E) none of the above