The idea that people like to save more money at higher interest rates and do not like saving as much money at lower interest rates results in a

a. Downward sloping demand curve in the labor market

b. Downward sloping demand curve in the loanable funds market

c. Upward sloping supply curve in the labor market

d. Upward sloping supply curve in the loanable funds market

Suppose a severe plague devastates the population and reduces the number of available workers, causing the supply of labor to decrease.How would this affect the equilibrium wage and employment level in the labor market?

a. Equilibrium employment will increase, but equilibrium wages will decrease

b. Equilibrium employment will decrease, but equilibrium wages will increase

c. Both equilibrium employment and wages will increase

d. Both equilibrium employment and wages will decrease

If there is an increase in the desire of foreigners to purchase goods and services from the United States and to invest in U.S. banks and businesses, then how would this affect the foreign exchange market?

a. the equilibrium quantity of foreign currency would increase and the U.S. dollar would appreciate.

b. the equilibrium quantity of foreign currency would increase and the U.S. dollar would depreciate.

c. the equilibrium quantity of foreign currency would decrease and the U.S. dollar would appreciate.

d. the equilibrium quantity of foreign currency would decrease and the U.S. dollar would depreciate.

Which of the following helps explain why the aggregate demand curve slopes downward?

a. If the price level increases, the purchasing power of the fixed quantity of money decreases, causing people to buy less.

b. If the price level increases, the purchasing power of the fixed quantity of money increases, causing people to buy more.

c. If domestic prices increase, we substitute domestic goods for imported goods.

d. If domestic prices decrease, we substitute imported goods for domestic goods.

Within the aggregate demand/aggregate supply framework, the quantity produced and purchased in the goods and services market represents

a. nominal output or nominal GDP.

b. the interest rate.

c. real output or real GDP.

d. the consumer price index.