This topic contains a solution. Click here to go to the answer

Author Question: Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in ... (Read 112 times)

rl

  • Hero Member
  • *****
  • Posts: 579
Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
 
  A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
  B) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
  C) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
  D) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.

Question 2

Which of the following would decrease the current account balance of the United States?
 
  A) a decrease in the amount of money the U.S. government sends in foreign aid to other countries
  B) a decrease in imports
  C) a decrease in the amount of income U.S. companies pay out to foreigners who own investments in the U.S.
  D) a decrease in the balance of trade



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

matt

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

C

Answer to Question 2

D




rl

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


cdmart10

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

For a complete list of videos, visit our video library