Which of the following explains why the aggregate demand curve is downward sloping?
A. the interest rate effect
B. the open economy effect
C. the real-balance effect
D. all of these
Answer: D
You might also like to view...
Refer to the scenario above. Which of the following is likely to be true if the game is played only once?
A) The equilibrium outcome will be a Nash. B) The equilibrium outcome will be socially inefficient. C) No unique equilibrium will occur. D) Multiple Nash equilibria will occur.
When housing prices ________ as they did beginning in 2006 following the housing market bubble, most banks and other lenders tightened the requirement for borrowers, making it ________ for potential home buyers to obtain mortgages
A) fell; easier B) rose; easier C) rose; harder D) fell; harder
The bowed production possibilities curve represents: a. constant opportunity costs
b. decreasing opportunity costs. c. increasing opportunity costs. d. none of the above
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?
A. $30 million. B. $0. C. $70 million. D. $50 million.