An increase in investment spending caused by higher expected rates of return will:
A. shift the aggregate supply curve to the left.
B. move the economy up along an existing aggregate demand curve.
C. shift the aggregate expenditures curve downward and the aggregate demand curve to the
left.
D. shift the aggregate expenditures curve upward and the aggregate demand curve to the
right.
D. shift the aggregate expenditures curve upward and the aggregate demand curve to the
right.
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The coupon rate is the:
A. regular payment of interest to a bondholder. B. interest rate promised when a bond is issued. C. maximum interest rate that can be paid on a bond. D. amount originally lent.
Suppose a country has had a high and relatively stable inflation rate for a long time. How might this affect the costs and benefits of inflation reduction?
Which of the following statements regarding growth was brought out from the material in Chapter 15?
A. There is no correlation between the volatility in growth rates and annual output growth. B. Stability results in higher output growth rates. C. The more volatile the growth rate, the higher is the annual output growth. D. Inflation volatility results in higher output growth rates.
From the perspective of the United States, a reduction in the nominal exchange rate will cause which of the following?
A) The dollar becomes more expensive to foreigners. B) Foreign goods are less expensive to Americans. C) Foreign currency is less expensive to Americans. D) American goods are less expensive to foreigners. E) none of the above