Answer the following statements true (T) or false (F)
1. The aggregate demand curve shows that when the price level rises, the quantity of real output demanded decreases.
2. An increase in the price level reduces the real value of financial assets with fixed money values and, as a result, the holders of these assets decrease their spending.
3. The real-balance and interest-rate effects help explain why aggregate demand might shift to the right or to the left.
4. An increase in real interest rates will increase investment and aggregate demand.
5. When the stock market crashed in 2008, the so-called reverse wealth effect caused consumer spending to decrease.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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The absence of clear property rights
A) is common in many developing nations. B) encourages creative destruction. C) is caused by capital deepening. D) all of the above.
Explain the difference between a change in demand and a change in quantity demanded
What will be an ideal response?