Author Question: The aggregate demand multiplier results in the aggregate demand curve shifting by more than any ... (Read 102 times)

jparksx

  • Hero Member
  • *****
  • Posts: 570
The aggregate demand multiplier results in the aggregate demand curve shifting by more than any given initial change in expenditure. Is the previous statement correct or incorrect?
 
  What will be an ideal response?

Question 2

When the expected profit ________, investment demand ________ and the demand for loanable funds curve shifts ________.
 
  A) falls; decreases; leftward
  B) rises; increases; leftward
  C) falls; decreases; rightward
  D) falls; increases; rightward
  E) rises; decreases; rightward



prumorgan

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

The statement is correct. The implication is that a, say 10 billion increase in investment shifts the aggregate demand curve rightward by more than 10 billion.

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

For a complete list of videos, visit our video library