Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
B) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
C) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
D) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
C
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The purpose of having the members of the Board of Governors of the Federal Reserve serve fourteen-year terms is to
A) establish long-standing ties with high-level officials of other nations' central banks. B) ensure that the governors become well-experienced at policymaking. C) promote unity of opinion from shared time together. D) insulate the governors' policy decisions from the influence of presidential elections and politics.
Who gains in a voluntary trade?
What will be an ideal response?
Status quo bias is the:
A. general resistance to change, often stemming from loss aversion. B. inefficiency that stems from constant change. C. inefficiency that stems from anchoring and adjustment. D. general enthusiasm for change, often stemming from regression to the mean.
The M1 money supply is defined to be the sum of currency, and
A. checkable deposits. B. Treasury bonds. C. savings accounts. D. large time deposits.