Economists who believe that real GDP may grow slowly because of insufficient demand for investment spending cite three main reasons for the low demand for loanable funds. Which of the following is not one of those reasons?
A) a reduced demand for housing due to slowing population growth
B) the continued decrease in the value of the dollar relative to the currencies of major U.S. trading partners
C) a smaller capital requirement for modern information technology firms
D) the falling price of capital relative to other goods
Question 2
Refer to Figure 24-2. Ceteris paribus, an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
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