As the price level falls

a. people are more willing to lend, so interest rates rise.
b. people are more willing to lend, so interest rates fall.
c. people are less willing to lend, so interest rates fall.
d. people are less willing to lend, so interest rates rise.


b

Economics

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A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower

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If labor and capital are perfect complements in production, short run supply curves are vertical.

Answer the following statement true (T) or false (F)

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Which of the following will cause the aggregate demand curve to shift to the right?

A) An increase in the price level B) An increase in the interest rate C) An increase in money demand D) An increase in investment expenditures

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Examples of barriers to entry include

A. Economic profits. B. Standardized products. C. Price taking. D. Patents.

Economics