Author Question: Increasing savings and go hand in hand because they both . A) decreasing ... (Read 58 times)

saliriagwu · **on:** Jun 29, 2018

Increasing savings and ________ go hand in hand because they both ________.

A) decreasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market
B) decreasing expenditures; are the result of an increase in real interest rates on the loanable funds market
C) increasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market
D) increasing expenditures; are the result of an increase in real interest rates on the loanable funds market
E) None of the above answers is correct.

Question 2

List the components of aggregate expenditure and describe how each of them changes as real GDP increases.

What will be an ideal response?

morganmarie791 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

The components of aggregate expenditure are consumption expenditure, investment, government expenditures on goods and services, exports, and imports. As real GDP increases, consumption expenditure and imports increase. However, investment, government expenditure on goods and services, and exports do not changethey are examples of autonomous expenditure, spending that does not change when real GDP changes.