Which of the following is a wealth effect that would most likely cause an increase in the quantity of real GDP demanded in a nation, ceteris paribus?

a. The interest rate in Canada rises due to rising prices.
b. Falling prices in France increase the real value of money.
c. Australian consumers decrease their spending.
d. Germany experiences a prolonged bout of high price levels.


b. Falling prices in France increase the real value of money.

Economics

You might also like to view...

If the shoplifter knows that the security guard has a reputation of always being vigilant, what is his best response?

a. Steal b. Not steal c. Run d. Hide

Economics

Economic policy tool—contractionary fiscal policy. This is a weapon that can be used against inflation, though it would generally be unwise to use it at times of high unemployment

What will be an ideal response?

Economics

Which of the following is not a weakness of fiscal policy?

What will be an ideal response?

Economics

Consider the following game. You pick a card from a deck and each time you select an ace, you get $260. For all other cards you must pay $13. What is the expected value of the game?

A. -$12 B. $0 C. $8 D. $32

Economics