A) more,so they can buy more.
B) more,so they can buy less.
C) less,so they can buy more.
D) less,so they can buy less.
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Correct Answer
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A) firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
B) firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding.
C) firms want to borrow less for new plants and equipment and households want to borrow more for homebuilding.
D) firms want to borrow less for new plants and equipment and households want to borrow less for homebuilding.
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A) raises personal income taxes.
B) increases the money supply.
C) institutes an investment tax credit.
D) All of the above are correct.
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Correct Answer
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A) less money,so they lend less,and the interest rate rises.
B) less money,so they lend more,and the interest rate falls.
C) more money,so they lend more,and the interest rate falls.
D) more money,so they lend less,and the interest rate rises.
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A) an increase in the price level.
B) households decide to save a larger fraction of their income.
C) an increase in net exports.
D) Congress passes a new investment tax credit.
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A) household consumption and investment.
B) household consumption,but not investment.
C) investment,but not household consumption.
D) neither investment nor household consumption.
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A) decreases the real value of money.
B) increases the real value of the dollar in foreign exchange markets.
C) decreases the interest rate.
D) All of the above are correct.
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Correct Answer
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A) people will want to hold more money,so the interest rate rises.
B) people will want to hold more money,so the interest rate falls.
C) people will want to hold less money,so the interest rate falls.
D) people will want to hold less money,so the interest rate rises.
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Correct Answer
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A) the money supply falls.
B) interest rates rise.
C) a dollar buys more domestic goods.
D) the aggregate-demand curve shifts right.
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A) the slope of short-run aggregate supply.
B) the slope of long-run aggregate supply.
C) the slope of the aggregate-demand curve.
D) everything that makes the aggregate-demand curve shift.
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Correct Answer
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A) An unexpectedly low price level raises the real wage,which causes firms to hire fewer workers and produce a smaller quantity of goods and services.
B) A lower price level causes domestic interest rates to rise and the real exchange rate to appreciate,which stimulates spending on net exports.
C) A higher price level increases real wealth,which stimulates spending on consumption.
D) A lower price level reduces the interest rate,which encourages greater spending on investment goods.
Correct Answer
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Correct Answer
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A) the supply of dollars in the market for foreign-currency exchange increases,and net exports fall.
B) the supply of dollars in the market for foreign-currency exchange increases,and net exports rise.
C) the supply of dollars in the market for foreign-currency exchange decreases,and net exports fall.
D) the supply of dollars in the market for foreign-currency exchange decreases,and net exports rise.
Correct Answer
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Correct Answer
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A) increased consumption,which shifts the aggregate-demand curve right.
B) increased consumption,which shifts the aggregate-demand curve left.
C) decreased consumption,which shifts the aggregate-demand curve right.
D) decreased consumption,which shifts the aggregate-demand curve left.
Correct Answer
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Correct Answer
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A) repeal of an investment tax credit,an increase in the money supply
B) repeal of an investment tax credit,a decrease in the money supply
C) passing of an investment tax credit,an increase in the money supply
D) passing of an investment tax credit,a decrease in the money supply
Correct Answer
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Correct Answer
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A) fall,interest rates to fall,and the dollar to appreciate.
B) fall,interest rates to rise,and the dollar to depreciate.
C) rise,interest rates to rise,and the dollar to appreciate.
D) rise,interest rates to fall,and the dollar to depreciate.
Correct Answer
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Correct Answer
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A) a decrease in the money supply
B) increases in the profitability of capital due perhaps to technological progress.
C) the repeal of an investment tax credit
D) a decrease in the price level
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Correct Answer
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A) both the money supply increase and the investment tax credit
B) the money supply increase but not the investment tax credit
C) the investment tax credit but not the money supply increase
D) neither the investment tax credit nor the money supply increase
Correct Answer
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Correct Answer
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A) the exchange rate falls,so net exports fall.
B) the exchange rate falls,so net exports rise.
C) the exchange rate rises,so net exports fall.
D) the exchange rate rises,so net exports rise.
Correct Answer
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Correct Answer
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A) less wealthy,so the quantity of goods and services demanded falls.
B) less wealthy,so the quantity of goods and services demanded rises.
C) more wealthy,so the quantity of goods and services demanded rises.
D) more wealthy,so the quantity of goods and services demanded falls.
Correct Answer
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Correct Answer
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A) net exports rise,which increases the aggregate quantity of goods and services demanded.
B) net exports rise,which decreases the aggregate quantity of goods and services demanded.
C) net exports fall,which increases the aggregate quantity of goods and services demanded.
D) net exports fall,which decreases the aggregate quantity of goods and services demanded.
Correct Answer
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Correct Answer
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