The aggregate quantity of goods and services demanded changes as the price level rises because
a. real wealth falls, interest rates rise, and the dollar appreciates.
b. real wealth falls, interest rates rise, and the dollar depreciates.
c. real wealth rises, interest rates fall, and the dollar appreciates.
d. real wealth rises, interest rates fall, and the dollar depreciates.
a
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Product differentiation
a. refers to the attempt of firms to make their goods look like those of the other firms in the industry b. refers to the attempt of firms to make essentially substitutable goods look different in the minds of the consumers c. refers to the advantage big firms have in research and development d. is a common characteristic of a perfectly competitive market structure e. is only employed in a monopoly market structure
A purely competitive firm's output is currently such that its marginal cost is $4 and marginal revenue is $5. Assuming profit maximization, the firm should:
A. raise its price and cut output. B. leave price unchanged and cut output. C. cut its price and raise its output. D. leave price unchanged and raise output.
Assume that a person only purchases two goods, food and clothing, and has a fixed budget constraint. Both goods are normal goods. If the price of food decreases, what will happen to the consumption of clothing based on the income effect?
Please provide the best answer for the statement.
Employer-provided private health insurance:
A. is unique to the United States and not typically found in other countries. B. is the most common form of health care provision in industrialized countries. C. substantially reduces the cost of health care provision relative to national health insurance schemes. D. provides a small percentage of health care spending in the United States.