The interest rate effect of the price level is reflected

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Reference no: EM13800455

1. The interest rate effect of the price level is reflected in:

the downward slope in aggregate demand.

the upward slope in aggregate supply.

the increase in interest rate to savers.

the upward slope in aggregate demand.

2. Changes in aggregate demand can be caused by changes in:

business costs.

government spending.

wages.

raw materials costs.

3. The classical model of the price level is associated with:

economists who followed Keynes's work.

John Maynard Keynes.

economists who came after Adam Smith but before Keynes.

economists who came before Adam Smith.

4. The demand for money is higher in Japan than in the United States because:

the average price level is lower in Japan.

the ATMs are open all night.

most stores in Japan do not accept credit cards.

Japanese banks pay interest on checking accounts.

5. A decrease in the money supply is likely to cause:

a decrease in borrowing and interest rates and an increase in aggregate demand.

a decrease in borrowing and interest rates and a decrease in aggregate demand.

an increase in borrowing and interest rates and a decrease in aggregate demand.

an increase in borrowing and interest rates and an increase in aggregate demand.

Reference no: EM13800455

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