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:

Phone Calls

Telecommunication in the form of voice or video conversations over a distance using phones or smartphones.

Paper Trail

Documentary evidence or records that trace or document a series of events, decisions, or transactions.

Tone

The implied attitude of the author toward the reader and the subject.

Telepresence

Technology that allows a person to feel or appear present at a location different from their own physical location.