When expenditures change due to changes in the real value of money caused by variations in the price level, this is known as the
A. interest rate effect.
B. real-balance effect.
C. open economy effect.
D. aggregate balances effect.
Answer: B
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What will be an ideal response?
If national laws protecting the health and safety of workers completely eliminate any and all risk, then
A) more people would be employed. B) workers in risky occupations become better off. C) compensating differentials would grow because workers could not be compensated by being given lower risk jobs. D) compensating wage differentials disappear and workers in risky occupations may be no better off.
Explain the difference between Microeconomics and Macroeconomics
What will be an ideal response?
As the key component in gasoline production, a decline in the price of crude oil would cause
A. the demand for gasoline will decrease. B. the demand for gasoline will increase. C. the supply of gasoline will increase, and its price will fall. D. the supply of gasoline will decrease, and its price will rise.