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2. Explain What happens to agg*e demand in each Of the following cases: (a) (b) (c) (d) (e) The irlterest rate rises; Wealth falls;
2. Explain What happens to agg*e demand in each Of the following cases: (a) (b) (c) (d) (e) The irlterest rate rises; Wealth falls; The dollar depreciates relative to foreign currencies; Households expect Ower prices Business taxes rise. 3. Explain What is likely to happen to US. expon and import spending as a result Of the dollar depreciating in value. 4. Explain how expectations about future prices and incomes Will affrct consumption 5. Explain how expectations about future sales Will affect investment. 6. HOW Will a change in the money supply affect aggregate demand?
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
