When prices fall and the cash balances that you hold in your wallet are worth more allowing you to purchase more with your money, then this explains why the aggregate demand curve is downward sloping. The effect that describes this phenomena is the:
A. Real balances effect
B. Foreign trade effect
C. Interest rate effect
D. Nominal income effect
A. Real balances effect
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Suppose your New Year's resolution is to get back in shape. You are considering various ways of doing this; you can sign up for a gym membership, walk to work, take the stairs instead of the elevator, or watch your diet
How would you evaluate these options and choose an optimal one?
Consider the two graphs above. Suppose that businesses expect to hire more workers. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Under the U.K. Bribery Act, bribery ________ virtually illegal per se and individuals convicted under this act can face up to ________ years in prison.
A) is; 20 B) is not; 10 C) is not; 20 D) is; 10
The characteristic of limited liability enables corporations to
A) avoid taxes on some of their profits. B) exist even when owners die. C) raise large amounts of financial capital. D) start up and dissolve easily.