Which of the Following Claims Concerning the Importance of Effects

question 183

Multiple Choice

Which of the following claims concerning the importance of effects that explain the slope of the U.S.aggregate-demand curve is correct?

• A)The exchange-rate effect is relatively small because exports and imports are a small part of real GDP.
• B)The interest-rate effect is relatively small because investment spending is not very responsive to interest rate changes.
• C)The wealth effect is relatively large because money holdings are a significant portion of most households' wealth.
• D)None of the above is correct.

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Definitions:

N2 Sleep

A stage of non-REM sleep characterized by sleep spindles and K-complexes, representing a deeper sleep than N1 and precedes the even deeper N3 sleep stage.

N1 Sleep

N1 sleep, or stage 1 sleep, is the initial phase of the sleep cycle, characterized as the transition from wakefulness to sleep, marked by reduced muscle activity, slowed breathing, and heart rate, and is typically brief.

REM Sleep

A unique phase of sleep characterized by rapid eye movement, increased brain activity, vivid dreams, and temporary paralysis of the muscles.

N1 Sleep

N1 sleep, or the first stage of non-REM sleep, is a transitional phase where one drifts in and out of sleep and can be easily awakened.