In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when the price level increases,

a. the real value of money decreases; in turn, the real value of the dollar increases in foreign exchange markets, which decreases net exports.
b. the real value of money decreases; in turn, interest rates increase, which decreases net exports.
c. households increase their holdings of money; in turn, interest rates decrease, which reduces spending on investment goods.
d. households increase their holdings of money; in turn, interest rates increase, which reduces spending on investment goods.


d

Economics

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We are interested in long-term growth primarily because it brings

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The proposition that changes in the money supply have no long-run effect on real variables is known as the ________

A) classical dichotomy B) quantity theory of money C) neutrality of money D) Fisher effect E) none of the above

Economics

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A. negative; exit from B. positive; entry into C. negative; entry into D. positive; exit from

Economics

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A. 4 hours B. 5 hours C. 6 hours D. 7 hours

Economics