For the US

question 153

Multiple Choice

For the U.S.economy,which of the following helps explain the slope of the aggregate-demand curve?

• A)An increase in the price level decreases the interest rate.
• B)An increase in the price level increases the interest rate.
• C)An increase in the money supply decreases the interest rate.
• D)An increase in the money supply increases the interest rate.

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Definitions:

Injection

An introduction of income into the economy through investment, government spending, or exports.

Circular Flow

A model in economics that depicts how goods and services and money move through the economy between households, businesses, government, and foreign sectors.

Value Added

The increase in worth of a product or service as a result of a particular process, calculated by the difference between the sale price and the production cost.

Double Counting

The error of including the same transaction or item more than once in a calculation or analysis, leading to inaccurate results.