An increase in real interest rates will increase aggregate demand.
Answer the following statement true (T) or false (F)
False
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If gold is used as money in an economy, the money supply is easy to control
Indicate whether the statement is true or false
Skeptics of government policy to reduce taxes on saving argue that it would primarily benefit the rich
a. True b. False Indicate whether the statement is true or false
Stanley Jevons, an economist in the nineteenth century, noted a high correlation between economic prosperity and sunspots. Based on this observation he developed a "sunspot theory" of how the economy operated. We now know that Jevons
A) committed the ceteris paribus error. B) committed the fallacy of composition. C) was confusing causality. D) showed good reasoning for the nineteenth but not the twentieth century
The following figure shows the free-trade production and consumption in Country Y. AB is the production-possibility curve of Country Y. I1 is the community indifference curve of Country Y. Country Y exports
A. seventy pounds of cheese. B. fifty gallons of wine. C. fifty pounds of cheese. D. ninety gallons of wine.