Economics

John makes it a point to save a portion of his salary every month. Ass

John makes it a point to save a portion of his salary every month. Assuming all else equal, if the real interest rate increases, it is likely to cause: A) a downward movement along John’s credit supply curve. B) John’s credit supply curve to shift to the left. C) John’s credit supply curve to shift […]

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Date: September 2nd, 2020

Some economists believe that a positive aggregate demand shock to an e

Some economists believe that a positive aggregate demand shock to an economy with large amounts of excess capacity and unemployment does not necessarily cause an increase in prices. Economists who adhere to this belief are followers of A) Keynesian economics. B) Say’s laws of economics. C) classical economics. D) supply-side economics.   ANSWER A

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Date: September 2nd, 2020