Multiple Choice
What are the effects of a decrease in the price level?
A) Wealth falls, people lend less, interest rates fall, and the dollar appreciates.
B) Wealth falls, people lend less, interest rates rise, and the dollar depreciates.
C) Wealth rises, people lend more, interest rates rise, and the dollar appreciates.
D) Wealth rises, people lend more, interest rates fall, and the dollar depreciates.
Correct Answer:
Verified
Correct Answer:
Verified
Q85: An increase in the money supply shifts
Q163: Suppose the economy was in long-run equilibrium
Q164: Which of the following does NOT determine
Q165: Pessimism about the future leads to falling
Q166: If the government increased the money supply
Q167: What does a fall in the economy's
Q169: Which of the following would shift the
Q170: Use the misperceptions theory to discuss the
Q172: What is the effect of increases in
Q173: What did NOT happen during the onset