A) people want to save more for retirement and the Fed increases the money supply.
B) people want to save more for retirement and the Fed decreases the money supply.
C) people want to save less for retirement and the Fed increases the money supply.
D) people want to save less for retirement and the Fed decreases the money supply.
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A) the dollar depreciates.
B) the interest rate rises.
C) people feel less wealthy.
D) All of the above are correct.
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A) the exchange-rate effect
B) the wealth effect
C) the interest-rate effect
D) All of the above are correct.
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A) people are more willing to lend,so interest rates rise.
B) people are more willing to lend,so interest rates fall.
C) people are less willing to lend,so interest rates fall.
D) people are less willing to lend,so interest rates rise.
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A) increase,the dollar to appreciate,and net exports to increase.
B) increase,the dollar to depreciate,and net exports to decrease.
C) decrease,the dollar to depreciate,and net exports to increase.
D) decrease,the dollar to appreciate,and net exports to decrease.
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A) rise,making aggregate demand shift right.
B) rise,making aggregate demand shift left.
C) fall,making aggregate demand shift right.
D) fall,making aggregate demand shift left.
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A) increase foreign bond purchases,so the supply of dollars in the market for foreign-currency exchange increases.
B) increase foreign bond purchases,so the supply of dollars in the market for foreign-currency exchange decreases.
C) decrease foreign bond purchases,so the supply of dollars in the market for foreign-currency exchange increases.
D) decrease foreign bond purchases,so the supply of dollars in the market for foreign-currency exchange decreases.
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A) households want to lend more,so the interest rate rises making the quantity of goods and services demanded rise.
B) households want to lend more,so the interest rate falls,making the quantity of goods and services demanded rise.
C) households want to lend more,so the interest rate rises,making the quantity of goods and services demanded fall.
D) None of the above are correct.
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Correct Answer
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A) people are more willing to lend,so interest rates rise.
B) people are more willing to lend,so interest rates fall.
C) people are less willing to lend,so interest rates fall.
D) people are less willing to lend,so interest rates rise.
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A) U.S.goods become more expensive relative to foreign goods so aggregate demand shifts right.
B) U.S.goods become less expensive relative to foreign goods so aggregate demand shifts right.
C) U.S.goods become more expensive relative to foreign goods so aggregate demand shifts left.
D) U.S.goods become less expensive relative to foreign goods so aggregate demand shifts left.
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A) consumption demand
B) investment demand
C) net exports
D) All of the above are correct.
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A) consumer wealth rises
B) borrowing rises
C) each dollar is worth more domestic goods
D) the dollar appreciates relative to other currencies
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A) and interest rates rise.
B) and interest rates fall.
C) fall and interest rates rise.
D) rise and interest rates fall.
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A) decreases as shown by a movement to the left along a given aggregate-demand curve.
B) decreases as shown by a shift of the aggregate demand curve to the left.
C) increases as shown by a movement to the right along a given aggregate-demand curve.
D) increases as shown by a shift of the aggregate demand curve to the right.
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A) falls,so exports rise and imports fall.
B) falls,so exports fall and imports rise.
C) rises,so exports rise and imports fall.
D) rises,so exports fall and imports rise.
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A) shift to the right of the aggregate-demand curve.
B) shift to the left of the aggregate-demand curve.
C) movement to the left along a given aggregate-demand curve.
D) movement to the right along a given aggregate-demand curve.
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A) decreases the dollar value of goods and services demanded in the economy.
B) decreases the real value of goods and services demanded in the economy.
C) increases the dollar value of goods and services demanded in the economy.
D) increases the real value of goods and services demanded in the economy.
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A) aggregate demand shifts right.
B) aggregate demand shifts left.
C) aggregate supply shifts right.
D) aggregate supply shifts left.
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A) right as do increases in government spending.
B) right while increases in government spending shift aggregate demand left.
C) left as do increases in government spending.
D) left while increases in government spending shift aggregate demand right.
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A) The interest rate falls because people will want to hold more money and so sell bonds.
B) Firms will want to spend more on new business buildings and business equipment and households will want to spend more building new homes.
C) Both A and B are correct.
D) None of the above are correct.
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