Multiple Choice
By analyzing aggregate demand through its component parts,we can conclude that,everything else held constant,a decline in the inflation rate causes
A) an increase in real interest rates,an increase in investment spending,and a decline in aggregate output demand.
B) a decline in real interest rates,a decrease in investment spending,and an increase in aggregate output demand.
C) a decline in real interest rates,an increase in investment spending,and an increase in aggregate output demand.
D) an increase in real interest rates,a decline in investment spending,and a decline in aggregate output demand.
Correct Answer:

Verified
Correct Answer:
Verified
Q98: Suppose the economy is producing below the
Q99: Everything else held constant,when financial frictions increase,the
Q100: With downward-sloping monetary policy and IS curves,the
Q101: Monetary policy authorities can affect real interest
Q102: Because shifts in aggregate demand are not
Q103: The expectations-augmented Phillips curve implies that as
Q105: Which of the followings is NOT true
Q106: A permanent negative supply shock leads to
Q107: Everything else held constant,an autonomous monetary policy
Q108: A decrease in the availability of raw