The real-balance effect pertains to the effect of:
A. Consumer spending on the price level, while the wealth effect refers to the impact of changes in wealth on consumer spending
B. Wealth-changes on aggregate demand, while the wealth effect refers to the impact of changes in the price level on the real value of wealth
C. Changes in interest rate on aggregate demand, while the wealth effect refers to the impact of changes aggregate demand on people's wealth
D. Price-changes on aggregate demand, while the wealth effect refers to the impact of changes in wealth on aggregate demand
D. Price-changes on aggregate demand, while the wealth effect refers to the impact of changes in wealth on aggregate demand
You might also like to view...
According to Keynes, wages are inflexible because
A) of the minimum wage set by government. B) of unions and long-term contracts. C) workers do not behave in their own self-interest. D) the economy is never in the long run.
If a manufacturer sells goods abroad for less than they sell for at home, which of the following is true?
a. An embargo has been established. b. A quota has been established. c. The manufacturer is engaged in dumping. d. There has been an improvement in the terms of trade. e. Tariffs have been reduced.
Money spent on college tuition is considered human capital by economists
a. True b. False Indicate whether the statement is true or false
Refer to Table 9-6. What is the value of $D in Stage 4 (round up to the nearest whole number)?
A) $82 B) $102 C) $12 D) $160