The _____ is the change in the purchasing power of assets that causes spending to change when the price level changes
a. purchasing power effect
b. interest rate effect
c. substitution effect
d. income effect
e. real-balance effect
e
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Winner's curse is likely to happen in which of the following auctions?
A) unexplored oil reserves B) corn stored in a warehouse C) 1,000 ton of iron ore D) U.S. Treasury Bonds
Charles Tiebout favors
A. people moving to local communities with others of similar tastes. B. government provision of all public goods. C. people of different tastes living in the same place. D. user taxes on public goods.
During 2008–2010, the U.S. economy showed signs of a(n)
A. mild recession. B. recessionary gap. C. inflationary gap. D. deflationary gap.
Suppose output is $35 billion, government purchases are $10 billion, desired consumption is $15 billion, and desired investment is $6 billion. Desired savings is equal to
A. $2 billion. B. $10 billion. C. $16 billion. D. $14 billion.