A decrease in the real interest rate occurs when ________
A) there is an autonomous tightening of monetary policy
B) expected inflation increases, relative to the nominal interest rate
C) a decrease in autonomous spending causes a decrease in equilibrium output
D) all of the above
E) none of the above
B
You might also like to view...
Outsourcing generally results from
A) unpatriotic behavior. B) comparative advantage. C) tax evasion. D) rent seeking.
A possible explanation for a natural phenomenon is called
A. the scientific method. B. a theory. C. a value judgment. D. normative economics.
If the price level in the current period is higher than what buyers and sellers anticipated,
a. profit margins will be unattractive and firms will expand output. b. profit margins will be unattractive and firms will reduce output. c. profit margins will be attractive and firms will expand output. d. profit margins will be attractive and firms will reduce output.
Which of the following is NOT one of the components of aggregate demand?
What will be an ideal response?