« previous next »

Author Question: According to the interest rate effect, as the price level decreases, households and firms' holdings ... (Read 45 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?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

The Coriolis effect and wind direction. The Coriolis effect and wind direction.
An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo
Acceptable ranges of heart rate Acceptable ranges of heart rate
Effect of Winds on Horizontal Transport Effect of Winds on Horizontal Transport
The rate of facilitated diffusion The rate of facilitated diffusion
How to calculate compound interest (Part 1) How to calculate compound interest (Part 1)
Video: Dendrite Animation

For a complete list of videos, visit our video library