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Solve clearly.. Need detailed explanation and don't copy from internet 1. Explain each of the following: a) Real balance effect, b) Interest rate effect, C)

Solve clearly.. Need detailed explanation and don't copy from internet

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1. Explain each of the following: a) Real balance effect, b) Interest rate effect, C) International trade effect 2. Explain what happens to aggregate demand in each of the following cases: (a) The interest rate rises; (b) Wealth falls; (c) The dollar depreciates relative to foreign currencies; (d) Households expect lower prices in the future; (e) Business taxes rise. 3. Explain what is likely to happen to U.S. export and import spending as a result of the dollar depreciating in value. 4. Explain how expectations about future prices and incomes will affect consumption. 5. Explain how expectations about future sales will affect investment. 6. How will a change in the money supply affect aggregate demand? 5

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