Equilibrium Output Will Rise and the Equilibrium Interest Rate Will

question 72

Multiple Choice

Equilibrium output will rise and the equilibrium interest rate will fall if

• A) government spending increases.
• B) the money supply increases.
• C) exports increase.
• D) all of the above.

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Definitions:

One-Of-A-Kind

Unique, without any identical counterpart.

Pure Rent

Payment to a factor of production (land, specifically) in excess of what is needed to keep it in its current use.

Fixed Supply

A situation where the quantity of a good, service, or resource is limited and cannot be changed in the short run, often leading to inelastic supply.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply.