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Author Question: According to the interest rate effect, as the price level decreases, households and firms' holdings ... (Read 32 times)

anshika

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  • 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

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

c

Answer to Question 2

e


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