For the U.S. economy, which of the following is the most important reason for the downward slope of the aggregate-demand curve?
a. the wealth effect
b. the interest-rate effect
c. the exchange-rate effect
d. the real-wage effect
b
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The utilitarian case for redistributing income is based on the assumption of
a. collective consensus. b. a notion of fairness engendered by equality. c. diminishing marginal utility. d. rising marginal utility.
The long run supply curve for a constant cost industry is:
a. horizontal. b. upward sloping. c. vertical. d. downward sloping.
Which of the following is not a function of money
(a) A unit of account. (b) A standard of deferred payment. (c) A unit of exchange. (d) A store of value.
Your professor loves his work, teaching economics. He has been offered other positions in the corporate world that would increase his monetary income by as much as 25 percent, but he has decided to continue working as a professor. His decision to continue teaching rather than taking other positions would not change unless
a. the marginal cost of teaching increased above the marginal benefit. b. the marginal benefit of teaching increased above the marginal cost. c. the marginal cost of teaching decreased. d. the marginal benefit of a corporate job decreased.