Microsoft's purchase of a factory in Mexico is entered into the U.S. balance of payments accounts as a

The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the

a. real wealth effect b. interest rate effect c. foreign purchases effect d. income effect e. aggregate demand effect

Which of the following methods did the government adopt in order to keep agricultural prices from falling too low?

a. reliance on free-market equilibrium b. soil bank programs c. land purchase subsidies d. mortgage relief e. price ceilings