In the above figure, if the interest rate is negatively related to household expenditures for any given level of household income, an increase in the interest rate will
A) shift the line vertically upward.
B) shift the line vertically downward.
C) make the line negatively sloped.
D) cause no change in the line's position.
B
Economics
You might also like to view...
An expansionary monetary policy lowers the real interest rate, causing the domestic currency to ________, thereby ________ net exports
A) appreciate; raising B) appreciate; lowering C) depreciate; raising D) depreciate; lowering
Economics
To correct the budget deficit for inflation, we should
a. multiply the budget deficit by the price deflator for GDP. b. subtract interest payments from tax revenues. c. divide the budget deficit by nominal GDP. d. divide the budget deficit by the consumer price index.
Economics