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Author Question: Planned aggregate expenditure is equal to A) consumption spending plus planned investment ... (Read 113 times)

Mr3Hunna

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on: Jun 29, 2018
Planned aggregate expenditure is equal to
 
  A) consumption spending plus planned investment spending.
  B) consumption spending plus planned investment spending plus government purchases plus net exports.
  C) planned investment spending only.
  D) consumption spending only.

Question 2

If the Fed orders an expansionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
 
  a. The money supply
  b. Interest rates
  c. Investment
  d. Consumption
  e. Net Exports
  f. The aggregate demand curve
  g. Real GDP
  h. The price level


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vickyvicksss

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

a. The money supply increases
b. Interest rates fall
c. Investment increases
d. Consumption increases
e. Net exports increase
f. The aggregate demand curve shifts to the right
g. Real GDP rises
h. The price level rises


Mr3Hunna

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

covalentbond

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Reply 3 on: Yesterday
Excellent

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