The level of aggregate output demanded rises when the price level falls, because the resulting decrease in the interest rate will lead to
A. higher investment spending and lower consumption spending.
B. higher investment spending and higher consumption spending.
C. lower investment spending and higher consumption spending.
D. lower investment spending and lower consumption spending.
Answer: B
Economics
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Which of the following statements about M1 and M2 is true?
A) Demand deposits are not part of M1. B) M2 is more liquid than M1. C) M1 is larger than M2. D) Savings deposits are part of M2.
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Which of the following would NOT reduce the natural rate of unemployment?
A) a tax cut B) an increase in government expenditures C) wage or price controls D) all of the above
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