Business, 22.07.2019 19:00, sk9600930

According to the interest rate effect, an increase in the price level leads to in the interest rate, and therefore to in the quantity of aggregate demand.

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Business, 16.07.2019 05:10, winnie45

Which of the following is incorrect? multiple choice a. given aggregate demand, an increase in aggregate supply increases real output and, assuming downward-flexible prices, reduces the price level. b. as the price level falls, the demand for money declines, the interest rate declines, and interest-rate-sensitive spending increases. c. when the price level increases, real balances increase and businesses and households find themselves wealthier and therefore increase their spending. d. as the u.s. price level rises, u.s. goods become relatively more expensive so that u.s. exports fall and u.s. imports rise.

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Business, 16.11.2019 03:31, bbyitskeke1242

Are the four components of planned aggregate expenditures a. consumption, investment, inventories, and government purchases. b. consumption, planned investment, unplanned changes in inventory, and exports. c. consumption, investment, government purchases, and net exports. d. consumption, investment, exports and imports. 27. the aggregate demand (ad) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate quantity of goods and services demanded c. a change in the interest rate will alter the aggregate quantity of goods and services demanded. d. consumers substitute between domestic-made goods as their prices change. 28. as prices rise, a fixed money supply will be able to buy fewer goods and services. this real balance effect is due to an) a. reduction in the interest rate. b. increase in aggregate demand c. decline in the purchasing power of the fixed quantity of money. d. increase in income. 29. the international substitution effect exists because a a. higher price level will reduce interest rates and stimulate foreign investment b. lower price level will make domestically produced goods less expensive relative to foreign goods. c. higher price level will reduce the purchasing power of money. d. lower price level will encourage americans to import more foreign goods. 30. if decrease in the stock market causes a decrease in the real wealth of individuals, the a. aggregate demand curve will shift to the left. b. long-run aggregate supply will shift to the left. c. general price level will increase. d. aggregate demand curve will shift to the right.

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Business, 23.11.2019 03:31, johan7974

Which of the following is incorrect? a. given aggregate demand, an increase in aggregate supply increases real output and, assuming downward-flexible prices, reduces the price level. b. as the u.s. price level rises, u.s. goods become relatively more expensive so that u.s. exports fall and u.s. imports rise. c. as the price level falls, the demand for money declines, the interest rate declines, and interest-rate-sensitive spending increases. d. when the price level increases, real balances increase and businesses and households find themselves wealthier and therefore increase their spending.

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Business, 05.12.2019 00:31, samiam61

Each of the scenarios considers a change in the aggregate price level. indicate whether the scenario demonstrates the wealth effect (aka the real balances effect) or the interest rate effect. after an increase in the aggregate price level, jasper realizes that the $300 in his checking account can now only buy as many lattes as $200 would have bought a year ago. as a result, he decides to purchase fewer lattes. abe notices an increase in the aggregate price of goods during the three years he has been charting his costs. due to the increase, he decides to use less of his money to finance investment spending for his business. micah decides to increase savings in order to finance the remodeling of his home rather than seek a loan. ivan notices a decrease in the aggregate price level of 10%, so he decides to spend more of his $3,500 in savings than he had originally planned to spend. wealth effect wealth effect interest rate effect wealth effect answer bank

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According to the interest rate effect, an increase in the price level leads to in the interest rate...

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