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:

UPS

Uninterruptible Power Supply, a backup power system that provides temporary power in case of main power failure.

BYOD Device

Bring Your Own Device, a policy allowing employees to use their personal devices for work purposes.

Motherboard

The main circuit board inside a computer to which the CPU, memory, storage, and other peripheral devices are connected.

Variable

An element, feature, or factor that can change or vary, often used in programming to represent data that can be modified as the program runs.