Because investment, consumption expenditure, and net exports are interest-sensitive components of expenditure, a ________ in the federal funds rate brings ________ in ________
A) fall; a decrease; aggregate supply
B) rise; an increase; aggregate supply
C) fall; an increase; aggregate demand
D) rise; an increase; aggregate demand
E) fall; a decrease; aggregate demand
C
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Investment in capital accumulation, as well as investment in education and other labor productivity enhancing programs, is necessary for economic growth
a. True b. False Indicate whether the statement is true or false
Identify four changes in the economy that would cause the aggregate demand curve to decrease (shift to the left)
The federal government
a. runs a deficit when tax revenues are greater than government purchases. b. runs a surplus when tax revenues are smaller than government purchases. c. runs a deficit when tax revenues are greater than government outlays. d. runs a surplus when tax revenues are greater than government outlays. e. runs a surplus when tax revenues are smaller than transfer payments..
Equilibrium GDP and the interest rate are interdependent
a. True b. False