Along the upward-sloping segment of the aggregate supply curve,
a. when real GDP increases, the price level rises
b. when real GDP increases, the price level does not change
c. when real GDP decreases, the price level rises
d. when real GDP increases, the price level falls
e. no relationship exists between changes in real GDP and changes in the price level
A
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Which of the following will lead to a decrease in the price of existing bonds?
A) a decrease in the rate of interest B) a reduction in the money supply C) an inward shift in money demand D) a decrease in planned investment spending
An autonomous depreciation of the U.S. dollar makes American goods ________ relative to foreign goods and results in a ________ in U.S. net exports, everything else held constant
A) cheaper; decline B) cheaper; rise C) more expensive; decline D) more expensive; rise