The real-balances effect suggests that a
a. Lower price level will decrease interest rates and increase consumption and investment spending
b. Lower price level will decrease the real value of many financial assets and therefore cause an increase in spending
c. Lower price level will increase the real value of many financial assets and therefore cause an increase in spending higher price level will increase the real value of many financial assets and therefore cause an increase in spending.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The real-balances effect suggests that a a. Lower price level will decrease interest rates and increase consumption and investment spending ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Release on recognizance is the pretrial release of a defendant who posts a minimum of 10% of the cash necessary for release on bond. a. True b. False
Answers (1)
List the three areas of the health triangle with an example of how to improve each dimension of health.
Answers (1)
Mustaine, inc., has a current stock price of $54. for the past year, the company had net income of $7,900,000, total equity of $26,300,000, sales of $50,500,000, and 4.1 million shares of stock outstanding.
Answers (1)
Kid's world industries has projected sales of 67,000 machines for the current year. the estimated january 1 inventory is 6,000 units, and the desired december 31 inventory is 15,000 units.
Answers (1)
Reflect on the various factors that affect development, both prenatally and postnatally. Select one factor and share a way that its effects can be mitigated.
Answers (1)
New Questions in Business
Transactional leadership encompasses all but one of the following. Which one? A. Goal settingB. Social interactionC. Monitoring progress toward goal achievementD. Giving feedbackE. Administering discipline
Answers (1)
Average fixed costs for a given level of output can be determined graphically by: A. summing the marginal costs of any number of units of output and dividing the sum by that output. B. the vertical distance between TC and TVC. C.
Answers (1)
Ed moura has 60000 invested in stocks paying 7%. how much additional money should he invest in certificates of deposit paying 3% so that the average retrun on the two investments is 4%.
Answers (1)
On January 1, Whispering Winds Corp. had 90,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr.
Answers (1)
On a 3-day fishing trip, 4 adults consumed food costing $60. for the same costs per person per day, what would be the cost of food consumed by 7 adults during a 5-day fishing trip?
Answers (1)