In the above figure, a movement from point A to point B can be explained by
A. the decrease in interest rates.
B. an decrease in the quantity of money in circulation.
C. the increase in exports to the foreign sector.
D. a decrease in the real value of cash balances.
Answer: D
You might also like to view...
In the long run, a firm in perfect completion will earn which of the following?
a. Economic loss b. Economic profit c. Zero economic profit d. Either economic loss or profit
Refer to the information provided in Scenario 25.1 below to answer the question(s) that follow.SCENARIO 25.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
Refer to Scenario 25.1. Based on the initial $100,000 deposit, the money supply will, at most, expand to
A. $1 million. B. $2 million. C. $16.67 million. D. $50 million.
Which of the following shows the relationship between national income (GDP) and total spending?
a. Demand schedule b. Consumption curve c. Expenditure schedule d. Balance schedule
In recent years, people have benefited from greater amounts of leisure time. This trend
a. has caused GDP to rise. b. has caused GDP to fall. c. made GDP fluctuate randomly d. is not accounted for in GDP.