Author Question: The increase in spending that occurs because the demand for investment goods increases when the ... (Read 66 times)

AEWBW

  • Hero Member
  • *****
  • Posts: 579
The increase in spending that occurs because the demand for investment goods increases when the price level falls is known as the
 
  A) price effect. B) international trade effect.
  C) wealth effect. D) interest rate effect.

Question 2

Which of the following is likely to happen when the Fed raises the federal funds rate?
 
  A) The long-run interest rate will fall. B) The labor demand curve shifts to the left.
  C) The volume of economic activity will increase. D) The labor demand curve shifts to the right.


ktidd

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

D

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

For a complete list of videos, visit our video library