The aggregate demand curve shows that, if other factors are held constant
A) higher price levels will result in higher total planned spending.
B) higher price levels will result in lower total planned spending.
C) lower price levels will result in inflationary conditions.
D) higher price levels will result in lower interest rates.
B
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When the dollar depreciates,
A) exports will increase and U.S. consumers benefit. B) imports will increase and U.S. consumers benefit. C) exports will decrease and U.S. exporters benefit. D) exports will increase and U.S. exporters gain.
In economic analysis, air pollution, water pollution, and scenery destruction are considered to be
A) externalities. B) internalities. C) private costs. D) marginal benefits.
Which of the following is true along the demand curve for labor?
a. The marginal cost of labor is constant. b. The wage rate is constant. c. The total cost of production is constant. d. The quantity of labor demanded is constant. e. The prices of all other inputs are constant.
Assuming that households do not change their cash holdings and banks loan out all of their excess reserves, if the required reserve ratio (RRR) is 10 percent and the Fed purchases $2,000 worth of bonds from banks, how much money will be eventually created?
a. $1,800 b. $2,000 c. $9,000 d. $18,000 e. $20,000