Business, 29.07.2020 19:01 ilovecatsomuchlolol

In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when the price level increases, Multiple Choice the real value of money decreases; in turn, the real value of the dollar increases in foreign exchange markets, which decreases net exports. households increase their holdings of money; in turn, interest rates decrease, which reduces spending on investment goods. households increase their holdings of money; in turn, interest rates increase, which reduces spending on investment goods. the real value of money decreases; in turn, interest rates increase, which decreases net exports.

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In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when...

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