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Author Question: The increase in spending that occurs because the demand for investment goods increases when the ... (Read 37 times)

AEWBW

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on: Jun 30, 2018
The increase in spending that occurs because the demand for investment goods increases when the price level falls is known as the
 
  A) price effect. B) international trade effect.
  C) wealth effect. D) interest rate effect.

Question 2

Which of the following is likely to happen when the Fed raises the federal funds rate?
 
  A) The long-run interest rate will fall. B) The labor demand curve shifts to the left.
  C) The volume of economic activity will increase. D) The labor demand curve shifts to the right.
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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ktidd

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


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