If Americans' home equity falls substantially, it would ____ wealth and consumer confidence, ____ consumption, and ____ aggregate demand
a. increase, decrease, increase
b. decrease, decrease, decrease
c. increase, increase, increase
d. increase, increase, decrease
b
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Suppose that, initially, the nominal interest rate is 6 percent and the inflation rate is 3 percent. If the inflation rate increases to 6 percent, what will be the new nominal interest rate?
A) 6 percent B) 1 percent C) 11 percent D) 9 percent
A law that prohibits certain kinds of market behavior such as monopoly and monopolistic practices is called ________
A) a consumer surplus law B) a trust law C) an antitrust law D) an anti-monopoly law
If productivity is growing at some sustained rate g, then output and capital per worker ________
A) are growing at the same rate g, in a stable steady state B) are growing faster than g, because improving technology encourages a higher rate of saving and investment C) are growing slower than g, because some of the new capital is merely replacing obsolete capital D) are growing faster than g, because productivity does not suffer from diminishing marginal product
Which of the following events will most likely cause an increase in both the price level and real gross domestic product?
(a) The prime rate increases (b) Exports increase (c) Income taxes increase (d) Crude oil prices decrease (e) Inflationary expectations decrease