Which of the following statements is TRUE about the interest rate effect?
A) The interest rate effect is why the aggregate demand curve is upward sloping.
B) A lower price level lowers the interest rate, which causes businesses and consumers to increase their desired spending.
C) A higher price level lowers the interest rate, which causes business and consumers to increase their desired spending.
D) Expenditures will change as a result of a change in the real value of money balances when there is a change in the price level.
B
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There is no deadweight loss from subsidy
a. True b. False Indicate whether the statement is true or false
Macroeconomics primarily examines:
A. the behaviour of individual households and firms. B. how prices are determined within individual markets. C. broad issues such as national output, employment and inflation. D. the output levels that maximize the profits of business firms