Which diagram in Figure 9.4 shows what happens to investment as the economy enters a recession, causing both business expectations to collapse and saving to increase further, thus causing banks to lower interest rates?

When two ice cream vendors locate next to each other on the beach, they are exhibiting a Nash equilibrium

a. True b. False Indicate whether the statement is true or false

The aggregate demand curve shows the relationship between inflation and:

A. the exchange rate. B. short-run equilibrium output. C. the nominal interest rate. D. the real interest rate.