Which one of the following does NOT explain why the aggregate demand curve is downward sloping?

A. The real balances effect
B. The entropy effect
C. The foreign purchases effect
D. The interest rate effect


B. The entropy effect

Economics

You might also like to view...

If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to take too few precautions

A) overestimated, overestimated B) overestimated; underestimated C) underestimated; overestimated D) underestimated; underestimated

Economics

The above figures show the market for hamburger meat. Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

A) Figure A B) Figure B C) Figure C D) Figure D

Economics

If $1,000 is placed in an account earning 8% annually, the balance at the end of seven years will be

A) $1,080. B) $1,560. C) $2,000. D) $1,714.

Economics

Property rights are relatively secure and free from the threat of nationalization in the high-growth Asian economies

Indicate whether the statement is true or false

Economics