iClicker

Question 1

Changes in C (consumerism)

Answer 1

stock market boom/crash, preferences re: consumption/saving tradeoff, and tax hikes/cuts

Question 2

Changes in I (Investment; Most Sensitive)

Answer 2

expectations, optimism/pessimism, interest rates, Monetary policy, Investment tax credit or other tax incentives

Question 3

Changes in G (Government; Fiscal Policy)

Answer 3

federal spending, e.g., defense, state and local spending, e.g., roads, schools

Question 4

Changes in NX (net exports)

Answer 4

booms/recessions in countries that buy our exports, appreciation/depreciation resulting from international speculation in foreign exchange market

Question 5

Interest Rate and money Supply have an inverse relationship.

Answer 5

True

Question 6

This event would cause the U.S. price level

Answer 6

and real GDP to fall

Question 7

Real GDP increases Money Demand which reduces AD.

Answer 7

True