The _____ effect states that a lower price level reduces the amount of money people wish to hold. When they lend out their excess savings, the _____ falls causing investment spending to rise and increases the quantity of goods and services demanded
Fill in the blank(s) with correct word
interest-rate, interest rate
You might also like to view...
The slope of the consumption function is
A) equal to the MPC and is equal to 1. B) not equal to the MPC and is equal to 1. C) equal to the MPC and is less than 1. D) equal to the MPC and is greater than 1. E) not equal to the MPC and is less than 1.
Legal ceilings on the rate of interest charged to individuals
A) guarantee credit is allocated according to need rather than ability to pay. B) make it easier for people with poor credit ratings to obtain loans. C) reduce the probability corporations will obtain scarce credit by bidding funds away from consumers. D) accomplish all of the above. E) accomplish none of the above.
Which statement best describes the immediate post-slavery experience for ex-slaves?
a. They were able to engage fully in the economic, social and political activities in their towns. b. Freedmen took advantage of the educational opportunities available to them and had education rates equal to those of whites. c. Most freedmen immediately moved north. d. Their life expectancies increased dramatically. e. Their income increased relative to the income of whites.
Prior to the AFL-CIO merger in 1955
A. the AFL was an alliance of industrial unions. B. the CIO was an alliance of craft unions. C. The AFL began to organize its own industrial unions as well as craft unions. D. the union movement was restricted to public employees.