The change in the aggregate quantity of goods and services demanded in the U.S. is based on the logic that as the price level falls,
a. real wealth falls, interest rates rise, and net exports fall.
b. real wealth falls, interest rates rise, and net exports rise.
c. real wealth rises, interest rates fall, and net exports fall.
d. real wealth rises, interest rates fall, and net exports rise.
D
Economics
You might also like to view...
If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then
A) real Gross Domestic Product (GDP) will rise by $100 billion. B) real Gross Domestic Product (GDP) will rise by $200 billion. C) real Gross Domestic Product (GDP) will rise by $400 billion. D) real Gross Domestic Product (GDP) will decrease by $100 billion.
Economics
In a closed economy
A) I = Y - C - G. B) I = Y + C - G. C) I = Y + C + G. D) I = Y - C + G.
Economics