Which of the following is an effect of an increase in the price level in an economy?
a. The real value of dollar-denominated assets will increase.
b. The aggregate expenditure line will shift upward.
c. The equilibrium real gross domestic product will decrease.
d. There will be downward movement along a particular aggregate demand curve.
e. The aggregate demand curve will shift rightward.
Question 2
Most of the Fed's liabilities are in the form of:
a. Federal Reserve notes.
b. checkable deposits.
c. U.S. Treasury deposits.
d. loans to member banks.
e. certificates of deposit.
The enhancement effect observed by Emerson.
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