According to the interest rate effect aggregate demand slopes downward (negatively) because ?

Related Mcqs:

Which of the following statements about economic fluctuations is true ?

A. None of these answers B. A depression is a mild recession C. A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together D. A recession is when output rises above the natural rate of output...

Which of the following would not cause a shift in the long-run aggregate supply curve ?

A. All of these answers shift the long-run aggregate supply curve B. An increase in the available capital C. An increase in the available labour D. An increase in price expectations...

In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to ?

A. shift the short-run aggregate supply curve to the left B. shift the aggregate demand curve to the right C. shift the short-run aggregate supply curve to the right D. shift the aggregate demand curve to the left...

Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to ?

A. Shift aggregate demand to the left B. Shift short run aggregate supply to the left C. shift aggregate demand to the right D. shift short-run aggregate supply to the right...

According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?

A. Prices to rise and output to rise B. Price to fall and output to remain unchanged C. Prices to fall and output to fall D. prices to rise and output to remain unchanged...