Answer the question based on the following list of factors that are related to the aggregate demand curve.
Refer to the list above. Investment spending would most likely be influenced by changes in:
A. 1 and 3
B. 4 and 6
C. 5 and 10
D. 8 and 9
C. 5 and 10
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When inflation occurs,
A) everyone (or almost everyone) is made worse off. B) only wealthy people can maintain their previous consumption levels. C) the cost of living rises. D) the prices of all goods rise in equal proportions. E) the purchasing power of money declines.
If there is an increase in the interest rate,
a. there will be a rightward movement along a stationary money demand curve b. there will be a leftward movement along a stationary money demand curve c. the demand curve for money will shift rightward d. the demand curve for money will shift leftward e. there will be no movement of the demand curve for money and no movement along it
If the Fed sells government bonds to the public, then reserves
a. increase and the money supply increases. b. increase and the money supply decreases. c. decrease and the money supply increases. d. decrease and the money supply decreases.
If supply and demand both shift to the right, equilibrium quantity:
A. falls, but the equilibrium price may rise, fall, or stay the same. B. may rise, fall, or stay the same, but equilibrium price will fall. C. rises, but the equilibrium price may rise, fall, or stay the same. D. may rise, fall, or stay the same, but equilibrium price will rise.