The relationship between changes in interest rates and changes in GDP
A) is negative since increases in R decrease investment.
B) is negative since increases in R decrease net exports.
C) cannot be determined since both variables are determined endogenously.
D) is positive since increases in R increase investment.
E) a and b.
Correct Answer:
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Q4: The price level in the long-run model
A)
Q5: Let total spending be notationally represented by
Q6: The demand for money
A) varies positively with
Q7: Capital asset pricing models serve as an
Q8: Net exports are
A) positively correlated with both
Q10: Suppose that the supply of money were
Q11: The money demand equation found in Chapter
Q12: Given a nominal rate of interest, the
Q13: Financial variables include, for the purposes of
Q14: In the long run, an increase in
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