the economics of money, banking, and financial markets

743 $

© 2014 Pearson Canada Inc.$

18. 
    

    Everything else held constant, a decrease in net exports ____ aggregate ____.
    A) increases; demand
    B) decreases; demand
    C) decreases; supply
    D) increases; supply
    Answer: B
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


19. 
    

    Everything else held constant, an increase in planned investment expenditure ____
    aggregate ____.
    A) increases; demand
    B) decreases; demand
    C) decreases; supply
    D) increases; supply
    Answer: A
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


20. 
    

    Everything else held constant, a decrease in planned investment expenditure ____
    aggregate ____.
    A) increases; demand
    B) decreases; demand
    C) decreases; supply
    D) increases; supply
    Answer: B
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


21. 
    

    Everything else held constant, aggregate demand increases when ____.
    A) taxes are cut
    B) government spending is reduced
    C) animal spirits decrease
    D) the money supply is reduced
    Answer: A
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate