What Causes Rates to Change?
? Tastes and preferences ? Relative Incomes ? Relative Price Levels ? Relative Real Interest Rates
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By using only the aggregate demand curve, we can determine
A) only the price level. B) only the quantity of real GDP. C) both the price level and quantity of real GDP. D) neither the price level nor the quantity of real GDP.
The spillover effects of actions that affect the well-being of nonconsenting third parties are called
a. side components. b. externalities. c. free riders. d. internalizations.
To stabilize interest rates, the Federal Reserve will respond to an increase in money demand by
a. buying government bonds, which decreases the supply of money. b. selling government bonds, which increases the supply of money. c. buying government bonds, which increases the supply of money. d. selling government bonds, which decreases the supply of money.
The demand curve that a monopolist faces is:
A. the market demand curve. B. the same as the demand curve that faces a perfectly competitive firm. C. not affected by changes in the prices of other goods. D. generally flatter than the demand curve that faces a perfectly competitive firm.