Question 1

Other things the same,if the price level rises,then domestic interest rates

Accepted Answer

A)  rise,so domestic residents will want to hold more foreign bonds.
B)  rise,so domestic residents will want to hold fewer foreign bonds.
C)  fall,so domestic residents will want to hold more foreign bonds.
D)  fall,so domestic residents will want to hold fewer foreign bonds.E) B) and D)
F) None of the above

Question 2

When the price level falls

Accepted Answer

A)  households want to lend less.
B)  the interest rate rises.
C)  firms want to spend less on investment goods.
D)  None of the above are correct.E) A) and B)
F) A) and C)

Question 3

Other things the same,when the price level falls,interest rates

Accepted Answer

A)  rise,so firms increase investment.
B)  rise,so firms decrease investment.
C)  fall,so firms increase investment.
D)  fall,so firms decrease investment.E) B) and D)
F) A) and B)

Question 4

Other things the same,an increase in the price level induces less spending on ​

Accepted Answer

A)  ​investment and net exports.
B)  ​investment,but not net exports.
C)  ​net exports,but not investment.
D)  ​neither net exports nor investment.E) B) and C)
F) A) and D)

Question 5

When the price level falls

Accepted Answer

A)  people want to hold more money.
B)  the interest rate rises.
C)  investment spending rises.
D)  All of the above are correct.E) A) and B)
F) None of the above

Question 6

When the dollar depreciates,U.S.

Accepted Answer

A)  exports and imports increase.
B)  exports increase,while imports decrease.
C)  exports decrease,while imports increase.
D)  exports and imports decrease.E) All of the above
F) A) and B)

Question 7

Which of the following is not included in aggregate demand?

Accepted Answer

A)  purchases of stock and bonds
B)  purchases of services such as visits to the doctor
C)  purchases of capital goods such as equipment in a factory
D)  purchases by foreigners of consumer goods produced in the United StatesE) B) and C)
F) A) and B)

Question 8

When the price level falls the quantity of

Accepted Answer

A)  consumption goods demanded rises,while the quantity of net exports demanded falls.
B)  consumption goods demanded and the quantity of net exports demanded both rise.
C)  consumption goods demanded and the quantity of net exports demanded both fall.
D)  consumption goods demanded falls,while the quantity of net exports demand rises.E) B) and C)
F) C) and D)

Question 9

An increase in household saving causes consumption to

Accepted Answer

A)  rise and aggregate demand to increase.
B)  rise and aggregate demand to decrease.
C)  fall and aggregate demand to increase.
D)  fall and aggregate demand to decrease.E) None of the above
F) All of the above

Question 10

When the price level falls

Accepted Answer

A)  the interest rate rises,so the quantity of goods and services demand rises.
B)  the interest rate rises,so the quantity of goods and services demand falls.
C)  the interest rate falls,so the quantity of goods and services demand rises.
D)  the interest rate falls,so the quantity of goods and services demand falls.E) A) and B)
F) A) and C)

Question 11

Aggregate demand shifts right if at a given price level

Accepted Answer

A)  taxes rise and shifts left if the money supply increases.
B)  taxes rise and shifts right if the money supply increases.
C)  taxes fall and shifts left if the money supply increases.
D)  taxes fall and shifts right if the money supply increases.E) B) and C)
F) None of the above

Question 12

Which of the following shifts aggregate demand to the left?

Accepted Answer

A)  The price level rises.
B)  Interest rates fall.
C)  The dollar depreciates for some reason other than a change in the price level.
D)  Stock prices fall for some reason other than a change in the price level.E) None of the above
F) A) and D)

Question 13

Other things the same,as the price level rises,

Accepted Answer

A)  the dollar depreciates.
B)  the interest rate falls.
C)  people feel less wealthy.
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 14

Which of the following would cause investment spending to decrease and aggregate demand to shift left?

Accepted Answer

A)  a decrease in the money supply and an investment tax credit.
B)  the repeal of an investment tax credit and an increase in the money supply.
C)  a decrease in the money supply and the repeal of an investment tax credit.
D)  an investment tax credit and an increase in the money supply.E) A) and C)
F) B) and D)

Question 15

From 2001 to 2005 there was a dramatic rise in the price of houses.If this rise made people feel wealthier,then it would have shifted

Accepted Answer

A)  aggregate demand right.
B)  aggregate demand left.
C)  aggregate supply right.
D)  aggregate supply left.E) C) and D)
F) A) and C)

Question 16

When the price level falls

Accepted Answer

A)  people want to hold less money.
B)  the interest rate falls.
C)  investment spending rises.
D)  All of the above are correct.E) A) and D)
F) None of the above

Question 17

As the price level falls

Accepted Answer

A)  people will want to buy more bonds,so the interest rate rises.
B)  people will want to buy fewer bonds,so the interest rate falls.
C)  people will want to buy more bonds,so the interest rate falls.
D)  people will want to buy fewer bonds,so the interest rate rises.E) None of the above
F) A) and B)

Question 18

Which of the following would both shift aggregate demand right?

Accepted Answer

A)  the price level decreases and government expenditures increase.
B)  the price level decreases and the government repeals an investment tax credit.
C)  taxes decrease and government expenditures increase.
D)  None of the above are correct.E) A) and B)
F) All of the above

Question 19

The quantity of aggregate goods and services demanded rises when the

Accepted Answer

A)  price level rises,because the interest rate rises.
B)  price level rises,because the interest rate falls.
C)  price level falls,because the interest rate rises.
D)  price level falls,because the interest rate falls.E) A) and C)
F) B) and C)

Question 20

The aggregate quantity of goods and services demanded changes as the price level falls because

Accepted Answer

A)  real wealth falls,interest rates rise,and the dollar appreciates.
B)  real wealth falls,interest rates rise,and the dollar depreciates.
C)  real wealth rises,interest rates fall,and the dollar appreciates.
D)  real wealth rises,interest rates fall,and the dollar depreciates.E) B) and D)
F) C) and D)

Exam 20: Aggregate Demand and Aggregate Supply: The Aggregate-Demand Curve

When the price level falls

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When the price level falls

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Which of the following would both shift aggregate demand right?

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Other things the same,when the price level falls,interest rates

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The aggregate quantity of goods and services demanded changes as the price level falls because

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An increase in household saving causes consumption to

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Other things the same,if the price level rises,then domestic interest rates

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Other things the same,as the price level rises,

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Aggregate demand shifts right if at a given price level

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When the dollar depreciates,U.S.

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When the price level falls

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Which of the following shifts aggregate demand to the left?

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When the price level falls

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When the price level falls the quantity of

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Other things the same,an increase in the price level induces less spending on ​

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From 2001 to 2005 there was a dramatic rise in the price of houses.If this rise made people feel wealthier,then it would have shifted

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The quantity of aggregate goods and services demanded rises when the

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As the price level falls

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Which of the following would cause investment spending to decrease and aggregate demand to shift left?

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Which of the following is not included in aggregate demand?

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Other things the same,an increase in the price level induces less spending on

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