The aggregate-demand curve shows that a decrease in the price level
a. decreases the dollar value of goods and services demanded in the economy.
b. decreases the real value of goods and services demanded in the economy.
c. increases the dollar value of goods and services demanded in the economy.
d. increases the real value of goods and services demanded in the economy.
d
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A current account deficit can occur if ________, all else equal
A) net national savings equals zero B) net factor income from abroad equals zero C) net exports are negative D) net investment income is negative
Two methods of measuring GDP are
A) the income approach and the expenditure approach. B) the income approach and the receipts approach. C) the goods approach and the services approach. D) the saving approach and the investment approach.
An asset's liquidity depends upon
A) the absolute size of its value and how long it takes to sell the asset at market value. B) how long it takes to sell the asset at market value and the costs of selling the asset. C) the costs of selling the asset and the fraction of its value that can be obtained if it is sold immediately. D) the fraction of its value that can be obtained if it is sold immediately and the absolute size of its value.
Banks act as an intermediary between savers and borrowers by determining the:
A. price at which the quantity of funds saved will be equal to the quantity invested. B. quantity of funds that will be saved depending on the price. C. quantity of funds that will be borrowed, for any given quantity of savings. D. price at which the quantity of funds saved will be more than enough for those who want to borrow.