Question
In: Economics
Other things the same, which of the following is correct? a. A decrease in the price...
Other things the same, which of the following is correct?
|
|||
|
|||
|
|||
|
Solutions
Expert Solution
A decrease in the price level is equivalent to an increase in the money supply. In both the cases, the cash in hand can buy more and increase the aggregate demand. With an increase in the money supply, the Dollar will depreciate and the AD curve will shift to the right.
The answer is "B", A decrease in the price level causes the dollar to depreciate. Aggregate demand shifts right.
Rahul Sunny answered 2 years agoRelated Solutions
1 .Which of the following, other things the same, would make the price level decrease and...
1 .Which of the following, other things the same, would make the
price level decrease and real GDP increase? a. long-run aggregate
supply shifts right b. long-run aggregate supply shifts left c.
aggregate demand shifts right d. aggregate demand shifts left
2. Other things the same, an increase in the price level induces
people to hold
a.
less money, so they lend less, and the interest rate rises.
b.
less money, so they lend more, and the interest rate falls....
Which of the following, other things the same, would make the price level decrease and real GDP increase?
Which of the following, other things the same, would make the price level decrease and real GDP increase? a. long-run aggregate supply shifts right b. aggregate demand shifts left c. aggregate demand shifts right d. long-run aggregate supply shifts left
Select the correct answer The law of demand states that other things remaining the same, if...
Select the correct answer
The law of demand states that other things remaining the same,
if the price of a good rises, the (quantity demanded of;
demand for) that good decreases.
A good whose demand increases as income increases is called a
(complement, normal) good.
Chocolate cake and cheesecake are considered
(complement; substitute) goods.
The (quantity supplied; supply) of a good is
the amount people are willing and able to sell during a specified
period at a specified price.
The...
Which of the following would be correct assuming that interest rates decrease? A. The price of...
Which of the following would be correct
assuming that interest rates decrease?
A. The price of a bond will decrease while the reinvestment
income will increase.
B. The price of a bond will decrease while the reinvestment
income will decrease.
C. The price of a bond will increase while the reinvestment
income will decrease.
D. The price of a bond will increase while the reinvestment
income will increase.
E. none of the above is correct.
Which of the following is...
Other things being equal, which of the following could decrease the average cost of producing automobiles...
Other things being equal, which of the following could decrease
the average cost of
producing automobiles in the United States?
A. An increase in wages paid to automobile workers.
B. A decrease in the average product of automobile workers.
C. An increase in the price of steel.
D. An increase in the price of automobiles.
E. An increase in the average product of automobile workers.
The law of diminishing marginal returns implies that
A. the marginal product of labor in...
Which of the following statements is CORRECT? Other things held constant, the less debt a firm...
Which of the following statements is CORRECT?
Other things held constant, the less debt a firm uses, the
lower its return on total assets will be.
The advantage of the basic earning power ratio (BEP) over the
return on total assets for judging a company's operating efficiency
is that the BEP does not reflect the effects of debt and
taxes.
The return on common equity (ROE) is generally regarded as
being less significant, from a stockholder's viewpoint, than the
return...
Other things remaining the same, as Australian imports decrease, the quantity of a.Australian dollars supplied increases....
Other things remaining the same, as Australian imports decrease,
the quantity of
a.Australian dollars supplied increases.
b.Australian dollars demanded decreases.
c.foregin currency demanded decreases.
d. foreign currency supplied decreases.
Which of the following statements is correct, assuming positive interest rates and holding other things constant?...
Which of the following statements is correct, assuming positive
interest rates and holding other things constant?
Banks A and B offer the same nominal annual rate of interest,
but A pays interest quarterly and B pays monthly. A deposit in Bank
B will have a higher value in five years.
Banks A and B offer the same nominal annual rate of interest,
but A pays interest daily and B pays semiannually. A deposit in
Bank B will have a higher...
Which of the following statements is most correct? Select one: a. Other things equal, a 15-year...
Which of the following statements is most correct?
Select one:
a. Other things equal, a 15-year mortgage will have smaller
monthly payments than a 30-year mortgage of the same amount and
same interest rate.
b. An investment's periodic interest rate will always be equal
to or greater than its nominal interest rate.
c. Other things equal, A 5-year $100 annuity due will have a
smaller present value than a 5-year $100 ordinary annuity.
d. An investment's nominal interest rate will...
Which of the following statements is most correct? Select one: a. Other things equal, a 15-year...
Which of the following statements is most correct?
Select one:
a. Other things equal, a 15-year mortgage will have smaller
monthly payments than a 30-year mortgage of the same amount and
same interest rate.
b. An investment's periodic interest rate will always be equal
to or greater than its nominal interest rate.
c. Other things equal, A 5-year $100 annuity due will have a
smaller present value than a 5-year $100 ordinary annuity.
d. An investment's nominal interest rate will...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please take time to view the video, “Was America Founded to Be Secular? “ as a...
- 7. A health psychologist knew that corporate executives in general have an average score of 80...
- Submission Guidelines This assignment may be submitted for full credit until Friday, October 4th at 11:59pm....
- Cara Ryder managers a ski school in a large resort and is trying to develop a...
- 1. Like most senses, the neurons that carry that carry the somatic sensations [touch, vibration, two-point...
- Explain how the Court has at times allowed the restriction of the civil rights of minority...
- 1. How do psychoanalytic and behavioral interpretations of childhood experience differ? 2. How does selective attention...
ADVERTISEMENT