Assuming That the SRAS Curve Is Upward Sloping,which of the Following

question 155

Multiple Choice

Assuming that the SRAS curve is upward sloping,which of the following statements represents a correct and sequentially accurate economic explanation?

• A) The demand for bonds falls,the price of bonds falls,the interest rate rises,investment spending declines,the AD curve shifts to the left,the price level declines and Real GDP decreases.
• B) The demand for bonds rises,the price of bonds rises,the interest rate rises,investment spending declines,the AD curve shifts to the left,the price level declines and Real GDP decreases.
• C) The supply of bonds rises,the price of bonds falls,the interest rate falls,investment spending rises,the AD curve shifts to the right,the price level declines and Real GDP decreases.
• D) The supply of bonds falls,the price of bonds rises,the interest rate falls,investment spending rises,the AD curve shifts to the right,the price level declines and Real GDP increases.

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Definitions:

Standard Normal

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis in statistical analysis for converting scores from any normal distribution.

Random Variable

A variable whose values depend on outcomes of a random phenomenon.

Standard Normal

A Gaussian distribution defined by a zero mean and a one standard deviation.

Random Variable

A numerical variable influenced by the randomness of an event.