According to the interest rate effect aggregate demand slopes downward (negatively) because ?
A. lower prices increase money holdings decrease lending interest rates rise, and investment spending falls
B. lower prices increase the value of money holding and consumer spending increases
C. lower prices decrease the value of money holdings and consumers spending decreases
D. lower prices reduce money holdings increase lending interest rates fall, and investment spending increase
A. Prices to rise and output to rise
B. Price to fall and output to remain unchanged
C. Prices to fall and output to fall
D. prices to rise and output to remain unchanged
A. Shift aggregate demand to the left
B. Shift short run aggregate supply to the left
C. shift aggregate demand to the right
D. shift short-run aggregate supply to the right
Stagflation occurs when the economy experiences ?
A. rising prices and rising output
B. rising prices and falling output
C. falling prices and falling output
D. falling prices and rising output
A. Price rise; output falls
B. Price fall; output rises
C. Price rise; output rises
D. Price fall; output falls
A. Price fall; output rises
B. Price fall; output falls
C. Price rise; output fall
D. Price rise; output rise