The interest rate effect suggests that the negative slope of the ...

[mp14]

The interest rate effect suggests that the negative slope of the aggregate demand curve results at least in part because changes in the price level affect:
 a. domestic purchases of foreign goods.
 b. the holdings of money by households and firms.
  c. the real purchasing power of assets.
 d. the level of income.

Question 2

The government sector sells resource services to households and buys goods and services from firms.
 a. True
  b. False
  Indicate whether the statement is true or false

[bhavsar]

Answer to Question 1

b

Answer to Question 2

False