The aggregate demand curve slopes downward because a rise in inflation? leads:
A. the fiscal policy authorities to impose contractionary fiscal measures.
B. the monetary policy authorities to raise real interest rates.
C. the monetary policy authorities to impose credit controls.
D. consumers and businesses to increase autonomous expenditures.
Ans: B. the monetary policy authorities to raise real interest rates.
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Which of the following leads to a decrease in real GDP?
A) an increase in interest rates B) an increase in government spending C) an increase in the inflation rate in other countries, relative to the inflation in the United States D) Households have increasingly optimistic expectations about future income.
Under the gold standard, a country experiencing a fall in its gold reserves was supposed to:
(a) Expand loans (b) Buy securities (c) Lower discount rates (d) Cut loans
A demand curve reflects each of the following except the
a. willingness to pay of all buyers in the market. b. value each buyer in the market places on the good. c. highest price buyers are willing to pay for each quantity. d. ability of buyers to obtain the quantity they desire.
A recession in the United States ________ the demand for exports from Canada resulting in a reduction in Canadian autonomous expenditures and a(n) ________ output gap in Canada.
A. reduces; recessionary B. reduces; expansionary C. increases; expansionary D. increases; recessionary