A decrease in interest rates will cause
A. AS to increase (move down and to the right).
B. AD to increase (move to the right).
C. AS to decrease (move up and to the left).
D. AD to decrease (move to the left).
Answer: B
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If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then
a. movies are now relatively cheaper in terms of work hours. b. movies are now relatively more expensive in terms of work hours. c. the relative price of movies has remained constant. d. workers now need to work longer hours to earn one movie ticket.
The tendency of changes in asset prices to affect spending on consumption goods is called the ________ effect.
A. multiplier B. substitution C. income D. wealth
The equation of exchange shows that the total spending in an economy is always greater than the total receipts
Indicate whether the statement is true or false
Supply-side policy suggests that if we _______ taxes of workers, the _________ labor will increase, causing equilibrium wages to ________.
A. raise, supply of, decrease B. cut, supply of, increase C. raise, demand for, increase D. cut, supply of, decrease