« previous next »

Author Question: According to the interest rate effect, as the price level decreases, households and firms' holdings ... (Read 71 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?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th Firing Rate of Individual SCN Neurons in a Tissue Culture Color bars have been added to emphasize th
Habituation to the Aversive Effect of the Odor of Pups Habituation to the Aversive Effect of the Odor of Pups
Impacts of rising sea level Impacts of rising sea level
First-Pass Effect First-Pass Effect
Cocaine’s Effect on the Brain Cocaine’s Effect on the Brain
Outgroup role in relative rate test Outgroup role in relative rate test
Video: Role of the respiratory system - effect of altered ventilation rates

For a complete list of videos, visit our video library