An increase in the U.S. interest rate
a. raises the opportunity cost of holding dollars.
b. induces households to increase consumption.
c. shifts money demand to the right.
d. leads to a depreciation of the U.S. dollar.
a
You might also like to view...
Provide four reasons for the changes observed in per-pupil spending during the latter half of the twentieth century
What will be an ideal response?
The key issue in determining the relevant product market is
A. the market share test. B. the production processes used to produce the goods. C. the degree of interchangeability between products. D. the specific geographic area in which competing products overlap.
Refer to Figure 21-26. Rhonda experiences an increase in her hourly wage. Her optimal choice point moves from A to B. For Rhonda,
a. Leisure is a normal good. b. Her labor supply curve is backward bending. c. Both a and c are correct. d. Her labor supply curve is upward sloping.
The value of the multiplier ________ as the marginal propensity to save decreases
A) decreases B) increases C) is constant D) becomes negative