Refer to the graph below. Which of the following factors does not explain a movement along the AD curve?
A. The expenditure multiplier effect
B. The real-balances effect
C. The interest-rate effect
D. The foreign purchases effect
A. The expenditure multiplier effect
You might also like to view...
The equation of exchange states that
a. money supply multiplied by real output equals velocity. b. velocity multiplied by money supply equals real output times the price level. c. money supply divided by velocity equals nominal GDP. d. money supply divided by velocity equals real GDP.
When politicians support policies that benefit small interest groups, such as farmers, at the expense of unorganized, widely dispersed groups, for example, taxpayers or consumers, this is a reflection of the
a. tragedy of interest. b. special-interest effect. c. unorganized interest effect. d. shortsightedness effect.