The level of aggregate output demanded falls when the price level rises, because the resulting increase in the interest rate will lead to
A. lower investment spending and lower consumption spending.
B. lower investment spending and higher consumption spending.
C. higher investment spending and lower consumption spending.
D. higher investment spending and higher consumption spending.
Answer: A
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When a currency decreases in value relative to another currency, the currency has
A) declined. B) appreciated. C) accelerated. D) decelerated. E) depreciated.
Some economists have argued that certain characteristics of the delivery of health care justify government intervention. One of these characteristics is
A) health care is nonrivalrous and nonexcludable. B) health care generates negative externalities. C) health care is a public good. D) health care generates positive externalities.
How can government policy stimulate economic growth?
a. increasing spending on Social Security payments b. decreasing spending on research and development forcing it to be more efficient c. increasing research and development of new technology d. decreasing spending to end the budget deficit
If Max experiences a decrease in his income, then we would expect Max's demand for
a. each good he purchases to remain unchanged. b. normal goods to decrease. c. luxury goods to increase. d. inferior goods to decrease.