The interest-rate effect
a. depends on the idea that increases in interest rates increase the quantity of money demanded.
b. depends on the idea that increases in interest rates increase the quantity of money supplied.
c. is the most important reason, in the case of the United States, for the downward slope of the aggregate-demand curve.
d. is the least important reason, in the case of the United States, for the downward slope of the aggregate-demand curve.
c
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Gross Domestic Product is the market value of all ________ produced within a country in a given period of time
A) final goods B) intermediate goods C) final services D) intermediate services E) final goods and services
A competitive market with flexible prices and many buyers and sellers will:
A) tend to create surpluses. B) tend to create shortages. C) reach an equilibrium where the market clears. D) reach and equilibrium only if a government agency sets the price.