Refer to the table. A decrease in the interest rate not caused by a change in the price level would:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. increase the values in column (3) and increase aggregate demand.
B. decrease the values in column (3) and increase aggregate demand.
C. increase the values in column (2) and decrease aggregate demand.
D. decrease the values in column (2) and decrease aggregate demand.
A. increase the values in column (3) and increase aggregate demand.
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Demand for workers in some industry declines. These workers are reluctant to have a cut in their nominal wage. However,
a. inflation will raise their real wage and so increase the number of available workers. b. inflation will raise their real wage and so decrease the number of available workers c. inflation will reduce their real wage and so increase the number of available workers. d. inflation will reduce their real wage and so decrease the number of available workers.
In which of these countries is labor union membership as a percentage of the labor force the lowest?
A. Sweden B. The United Kingdom C. France D. The United States
In an economy operating under flexible exchange rates, explain why the IS curve is downward sloping
What will be an ideal response?
A perfectly competitive firm faces a demand curve that is
A) perpendicular to the quantity axis. B) horizontal. C) vertical. D) perfectly inelastic.