Which one of the following variables is not held constant along a given aggregate demand curve? A. expectations...

70.2K

Verified Solution

Question

Economics

Which one of the following variables is not heldconstant along a given aggregate demand curve?

A.

expectations about inflation

B.

the exchange rate

C.

the price level

D.

fiscal policy

Everything else remaining the same, an increase in the interestrate increases saving and

A.

decreases aggregate demand through the intertemporalsubstitution effect.

B.

increases aggregate demand through the intertemporalsubstitution effect.

C.

increases aggregate demand through the internationalsubstitution effect.

D.

increases aggregate demand through the wealth effect.

Discretionary fiscal policy is risky because it is hamperedby

A.

recognition lag, impact lag, and law-making lag.

B.

recognition lag, inflation lag, and law-making lag.

C.

recognition lag, impact lag, and business cycle lag.

D.

recognition lag, business cycle lag, and law-making lag.

Foreign exchange dealers expect the Canadian dollar next year toappreciate against all currencies. What is the effect on thequantity of real GDP demanded or aggregate demand inCanada?       

A.

Canadian aggregate demand decreases.

B.

Canadian aggregate demand increases.

C.

The quantity of Canadian real GDP demanded decreases.

D.

The quantity of Canadian real GDP demanded increases.

Answer & Explanation Solved by verified expert
4.4 Ratings (1124 Votes)
Which one of the following variables is not held constant along a given aggregate demand curve C the price level Remaining variables are held constant along a given aggregate demand curve Everything    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students