Which component of aggregate demand is involved in the interest rate effect caused by a price level change?

a. government purchases
b. investment spending
c. consumer spending
d. net exports


b. investment spending

Economics

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The total utility from three skirts is

A) three times the marginal utility of the third skirt. B) three times the price of a skirt. C) three skirts divided by total income. D) the sum of the marginal utility of the first skirt plus the marginal utility of the second skirt plus the marginal utility of the third skirt.

Economics

Steve is finding it impossible to get over his most recent break-up and finds himself talking about her constantly. An example of a commitment device that Steve could use to get over her would be:

A. to allow Steve's best friend to punch him in the arm any time he mentions her name. B. to take a cold shower every morning. C. to start dating someone else. D. None of these is a commitment device.

Economics

An increase in the interest rate will stimulate firms' investment spending

a. True b. False Indicate whether the statement is true or false

Economics

International flows of goods and services are not connected to the international flows of financial capital.

Select whether the statement is true or false. A. True B. False

Economics