The Wealth Effect, the Interest Rate Effect, and the International

question 113

Multiple Choice

The wealth effect, the interest rate effect, and the international trade effect account for the:

• A)positive slope of the short-run aggregate supply curve.
• B)the shape of the long-run aggregate supply curve.
• C)positive slope of the aggregate demand curve.
• D)negative slope of the aggregate demand curve.
• E)negative slope of the short-run aggregate supply curve.

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Definitions:

Shipload

A measurement or quantity of cargo that is large enough to be carried by a ship.

Duress

Coercion or compulsion by threat or force, often affecting the validity of a contract.

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Treasury Bills

Short-term debt obligations issued by the government to finance its operations, with maturities ranging from a few days to one year.