A) people are more willing to lend,so interest rates rise.
B) people are more willing to lend,so interest rates fall.
C) people are less willing to lend,so interest rates fall.
D) people are less willing to lend,so interest rates rise.
F) C) and D)
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A) A decrease in the price level causes the dollar to appreciate.Aggregate demand shifts right.
B) A decrease in the price level causes the dollar to depreciate.Aggregate demand shifts right.
C) If speculators lose confidence in the American economy,the dollar appreciates.Aggregate demand shifts right.
D) If speculators lose confidence in the American economy,the dollar depreciates.Aggregate demand shifts right.
F) C) and D)
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A) falls,so the supply of dollars in the market for foreign currency exchange shifts left.
B) falls,so the supply of dollars in the market for foreign currency exchange shifts right.
C) rises,so the supply of dollars in the market for foreign currency exchange shifts left.
D) rises,so the supply of dollars in the market for foreign currency exchange shifts right.
F) All of the above
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A) the interest rate rises,so the quantity of goods and services demand rises.
B) the interest rate rises,so the quantity of goods and services demand falls.
C) the interest rate falls,so the quantity of goods and services demand rises.
D) the interest rate falls,so the quantity of goods and services demand falls.
F) C) and D)
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A) increased,so it would increase production.
B) increased,so it would decrease production.
C) decreased,so it would increase production.
D) decreased,so it would decrease production.
F) B) and D)
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Examples in the text (or variations)incl...View Answer
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A) affect nominal but not real variables.This view that money is ultimately neutral is consistent with classical theory.
B) affect nominal but not real variables.This view that money is ultimately neutral is inconsistent with classical theory.
C) affect real but not nominal variables.This view that money is ultimately neutral is consistent with classical theory.
D) affect real but not nominal variables.This view that money is ultimately neutral is inconsistent with classical theory.
F) All of the above
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Price leve...View Answer
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B) False
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A) Real GDP is the variable most commonly used to measure short-run economic fluctuations.These fluctuations can be predicted with some accuracy.
B) Real GDP is the variable most commonly used to measure short-run economic fluctuations.It is almost impossible to predict these fluctuations with much accuracy.
C) Nominal GDP is the variable most commonly used to measure short-run economic fluctuations.These fluctuations can be predicted with some accuracy.
D) Nominal GDP is the variable most commonly used to measure short-run economic fluctuations.It is almost impossible to predict these fluctuations with much accuracy.
F) B) and C)
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A) The price level rises.
B) The price level falls.
C) The dollar depreciates for some reason other than a change in the price level.
D) Stock prices fall for some reason other than a change in the price level.
F) B) and D)
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