Other things equal, a decrease in the price level ________ the equilibrium interest rate and ________ equilibrium output.
A. decreases; decreases
B. increases; decreases
C. decreases; increases
D. increases; increases
Answer: C
You might also like to view...
Which of the following counts as part of money?
A) $10,000 in gold bars B) $10,000 in government bonds C) $10,000 in a checking account D) $10,000 in corporate bonds
The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
A decrease in population can be expected to
a. increase the marginal product of land. b. decrease the supply of land. c. decrease the rents on land. d. increase the demand for land.
Economists make simplifying assumptions to
A) understand extremely complex phenomenon. B) build a model that is as close to the real world as possible. C) focus on the variables that are important to an economic theory. D) A and C