When the price level in the United States rises,
a. there is an increased demand for credit (or borrowed money)
b. producers' demand for new machinery increases, contributing to an increase in aggregate demand
c. Americans tend to buy more foreign goods and services
d. the French, Canadians, and Japanese find our exports more attractive
e. to maintain the value of your real wealth holding, you save less
C
You might also like to view...
Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases. What are we sure of?
A. equilibrium price decreases B. equilibrium quantity increases C. both equilibrium price and quantity increase D. equilibrium quantity decreases E. equilibrium price increases
Housing is a normal good. That means
a. that most people prefer to purchase their housing rather than rent it b. that most people tend to purchase more housing if its price falls. c. that people tend to purchase more housing if their income increases d. that most people live in houses e. the people tend to purchase more housing if its price rises