Which of the following is correct?
a. Economic forecasts are precise and aggregate spending responds almost immediately to interest rate changes.
b. Economic forecast are precise and aggregate spending responds to interest rate changes with a lag.
c. Economic forecasts are imprecise and aggregate spending responds almost immediately to interest rate changes.
d. Economic forecast are imprecise and aggregate spending responds to interest rate changes with a lag.
d
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Refer to the scenario above. if the investor plans to invest a sum of $4,000, the net present value of Option C is:
A) -$1,236.36. B) -$337.56. C) $516.80. D) $1,800.79.
One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises,
A) firms produce more goods and services. B) firms produce fewer goods and services. C) people substitute toward more imported goods and services. D) peoples' wealth increases.