Monetary policy and fiscal plan influencea. Output and also prices in the short run and the lengthy run.b. Output and also prices in the short run only.c. Calculation in the short run and the long run.d. Calculation in the brief run only
The score of financial policy and also fiscal policy is toa. Counter the move in accumulation demand and thereby get rid of unemployment.b. Offset shifts in aggregate demand and thereby stabilize the economy.c. Enhance the move in accumulation demand and also thereby create fluctuations in output and employment.d. Boost the shifts in aggregate demand and thereby increase financial growth
The interest-rate effecta. Counts on the idea that decreases in attention rates increase the amount of goods and services demanded.b. Relies on the idea the decreases in interest rates decrease the amount of goods and services demanded.c. Is responsible because that the downward slope of the money-demand curve.d. Is the least vital reason, in the case
a. Counts on the idea that decreases in attention rates increase the amount of items andservices demanded.

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Which the the following claims concerning the prestige of results that define the slope of theU.S. Aggregate- need curve is correct?a. The exchange-rate result is reasonably small since exports and imports room a small partof actual GDP.b. The interest-rate result is reasonably small since investment safety is not veryresponsive to interest rate changes.c. The wealth result is relatively large because money holdings space a significant portion ofmost households" wealth.d. Nobody of the above is correct.
a. The exchange-rate result is relatively small due to the fact that exports and also imports are a small partof real GDP.
In recent years, the federal Reserve has performed policy by setup a target for thea. Size of the money supply.b. Growth rate the the money supply.c. Federal funds rate.d. Discount rate.
Liquidity preference theory is most relevant come thea. Brief run and also supposes the the price level adjusts to carry money supply and moneydemand right into balance.b. Brief run and supposes the the interest rate adjusts to bring money supply and moneydemand right into balance.c. Lengthy run and supposes that the price level adjusts to carry money supply and moneydemand right into balance.d. Lengthy run and also supposes the the interest rate adjusts to carry money supply and moneydemand right into balance.
b. Short run and also supposes that the interest price adjusts to carry money supply and moneydemand right into balance.
When the interest rate increases, the opportunity price of stop moneya. Increases, so the quantity of money request increases.b. Increases, for this reason the amount of money request decreases.c. Decreases, therefore the quantity of money inquiry increases.d. Decreases, therefore the amount of money request decreases.

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In which of the following instances would the quantity of money demanded it is in largest?a. R = 0.03, ns = 1.2b. R = 0.03, p = 1.3c. R = 0.04, ns = 1.2d. R = 0.05, p = 0.9
If the stock sector booms, thena. Accumulation demand increases, i m sorry the Fed could offset by raising the money supply.b. Aggregate supply increases, i m sorry the Fed can offset by raising the money supply.c. Accumulation demand increases, which the Fed could offset by decreasing the money supply.d. Accumulation supply increases, which the Fed might offset by decreasing the money supply
Which that the following sequences finest explains the an unfavorable slope that the aggregate-demand curve?a. Price level ↑ ⇒ demand for money ↓ ⇒ equilibrium interest rate ↑ ⇒ quantity of goods and also services inquiry ↓b. Price level ↑ ⇒ need for money ↑ ⇒ equilibrium interest price ↓ ⇒ amount of goods and services inquiry ↓c. Price level ↓ ⇒ need for money ↓ ⇒ equilibrium interest rate ↓ ⇒ quantity of goods and also services inquiry ↑d. Price level ↓ ⇒ equilibrium interest price ↓ ⇒ demand for money ↑ ⇒ quantity of goods and also services demanded ↑
c. Price level ↓ ⇒ need for money ↓ ⇒ equilibrium interest price ↓ ⇒ quantity of goods and also services request ↑
The marginal propensity come consume (MPC) is characterized as the portion ofa. Extra revenue that a household consumes rather than saves.b. Extra earnings that a family either consumes or saves.c. Total income the a household consumes rather than saves.d. Complete income that a household either consumes or saves.
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