An increase in the interest rate directly affects ______, but also has an indirect effect on ______ because of its effect on exchange rates.
A) planned consumption and investment; government spending
B) planned consumption and investment; net exports
C) net exports; planned consumption and investment
D) net exports; government spending
Correct Answer:
Verified
Q1: Shifts in _ can push the economy
Q3: A negative demand shock will shift the
Q4: A positive demand shock will shift the
Q5: The economy is in short-run equilibrium:
A)when the
Q6: A sudden increase in household wealth is
Q7: The AD curve _ because, holding all
Q8: The aggregate demand curve shows the relationship
Q9: The aggregate demand curve shifts when there
Q10: When the interest rate in the U.S.falls,
Q11: Changes in planned spending not caused by
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