Author Question: According to the interest rate effect, as the price level decreases, households and firms' holdings ... (Read 55 times)

anshika

  • Hero Member
  • *****
  • Posts: 510
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
Answer to Question 1

c

Answer to Question 2

e



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

For a complete list of videos, visit our video library