The interest rate effect suggests that
A) an increase in the price level decreases the interest rate, which causes businesses and consumers to reduce desired spending.
B) an increase in the price level increases the interest rate, which causes businesses and consumers to reduce desired spending.
C) an increase in the price level increases the money supply, which causes businesses and consumers to increase desired spending.
D) a decrease in the price level decreases the interest rate, which causes businesses and consumers to reduce desired spending.
B
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As a real estate agent, Krista Otavi prides herself on her good training, availability to clients, and hard work to make a sale. Which one of the basic ways of product differentiation does Krista emphasize?
a. services b. product image c. location d. commission rate e. physical differences
The SRAS is ____; the LRAS is ____
a. upward sloping; upward sloping b. upward sloping; vertical c. vertical; upward sloping d. vertical; vertical
In a command economy like the old Soviet Union, one is able to improve one's lot and get ahead in society largely through:
A. Entrepreneurship and risk-taking B. Innovation and profits C. Participating in the political hierarchy D. Getting high prices for one's products and resources
The slope of a vertical line is
A. negative. B. infinite. C. continually changing. D. zero.