The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to raise ________ interest rates, thereby ________ the level of equilibrium aggregate output., everything else held constant
A) real; lowering
B) real; raising
C) nominal; lowering
D) nominal; raising
A
You might also like to view...
How are sunk costs and fixed costs related?
A) In the long run they are equal to each other. B) In the short run they are equal to each other. C) They are not related in any way. D) Sunk costs cannot be recovered and fixed costs can be avoided by shutting down.
If interest rates rise, what will happen to the nation's exchange rate?
What will be an ideal response?
When the U.S. Congress increased the immigration quota for software engineers and other high-tech workers in 2000, the intent was to change the shape and position of the
A. Investment function. B. AD curve. C. Consumption function. D. AS curve.
Which of the following would not be counted in the U.S. BOP current account?
A. Helen, an American oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction. B. General Motors Corporation owns buildings that are situated in Mexico. C. France purchases a new jet fighter aircraft from the Boeing Company in the U.S. D. Martha receives a $50 dividend check on stock she owns in a business in Germany.