Higher interest rates cause investment spending to fall and pull down aggregate demand via the multiplier mechanism.
Answer the following statement true (T) or false (F)
True
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In the short-run, a temporary increase in money supply
A) shifts the DD curve to the right, increases output and appreciates the currency. B) shifts the AA curve to the left, increases output and depreciates the currency. C) shifts the AA curve to the left, decreases output and depreciates the currency. D) shifts the AA curve to the left, increases output and appreciates the currency. E) shifts the AA curve to the right, increases output and depreciates the currency.
The International Monetary Fund was created to achieve each of the following goals EXCEPT
A) lend funds to countries with international payment problems. B) lend funds to large government infrastructure projects. C) monitor and offer advice on the exchange rate policies of member nations. D) encourage free convertibility of the currencies of member nations.
An increase in the demand for commercial complexes will: a. shift the demand for land curve to the left. b. shift the demand for land curve to the right. c. decrease the rental earnings from land
d. decrease the quantity of land demanded.
The aggregate demand curve is a function of ______.
a. real aggregate expenditure and real GDP b. price level and real aggregate expenditure c. price level and real GDP d. real aggregate expenditure and real aggregate demand