Multiple Choice
A rise in the real rate of interest the opportunity cost of holding an inventory of a given size, and therefore desired investment expenditure.
A) decreases; decreases
B) increases; increases
C) decreases; leaves unaffected
D) increases; decreases
E) decreases; increases
Correct Answer:

Verified
Correct Answer:
Verified
Q11: The aggregate consumption function is based on
Q12: The change in desired consumption divided by
Q13: In each of the four expenditure categories,
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Q15: The increase in aggregate planned expenditures divided
Q18: Suppose there is an increase in the
Q19: Consider a simple macro model with demand-
Q20: Total desired saving divided by total income
Q21: If the marginal propensity to consume (MPC)is
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