« previous next »

Author Question: According to the interest rate effect, as the price level decreases, households and firms' holdings ... (Read 56 times)

anshika

  • Hero Member
  • *****
  • Posts: 510
on: Jun 30, 2018
According to the interest rate effect, as the price level decreases, households and firms' holdings of money ____, interest rates ____, investments ____, and the quantity RGDP demanded ____.
 a. increases, decrease, increase, decreases
  b. increases, increase, increase, decreases
  c. decreases, decrease, increase, increases
  d. increases, increase, decrease, decreases

Question 2

The equilibrium level of income will rise when:
 a. planned consumption spending is less than real GDP.
  b. taxes exceed saving.
  c. supply exceeds demand.
  d. planned inventory investment is negative.
  e. aggregate expenditures exceed real GDP.


Dinolord

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

e


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Energy Level Diagram of Hydrogen Energy Level Diagram of Hydrogen
Atmospheric pressure decreases with increase in altitude. Atmospheric pressure decreases with increase in altitude.
Factors Affecting Saturation and Condensation: Effect of Curvature Factors Affecting Saturation and Condensation: Effect of Curvature
Examples of Basic-Level, Subordinate, and Superordinate Concepts Examples of Basic-Level, Subordinate, and Superordinate Concepts
How to calculate simple interest (Part 2) How to calculate simple interest (Part 2)
How to calculate present value using the compound interest formula (Question 1) How to calculate present value using the compound interest formula (Question 1)
Video: Mechanics of Sound Animation

For a complete list of videos, visit our video library