Multiple Choice
Which of the following is NOT a response that would result from a decrease in the price level and so help to explain the slope of the aggregate demand curve?
A) When interest rates fall, Sleepwell Hotels decides to build some new hotels.
B) The exchange rate falls, so French restaurants in Paris buy more Canadian beef.
C) Janet feels wealthier because of the price drop, and so she decides to remodel her bathroom.
D) With prices down and wages fixed by contract, Gatekeeper Computers decides to lay off workers.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: According to liquidity-preference theory, if the quantity
Q13: When the Bank of Canada buys government
Q74: If there is excess money demand, what
Q87: For Canada, the most important reason for
Q151: Which of the following terms refers to
Q152: Which of the following lists of events
Q153: Which of the following policy alternatives would
Q155: Most economists believe that a cut in
Q157: Which of the following policies would stabilization
Q159: If there are automatic stabilizers but no