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NikAS [45]
2 years ago
13

Explain how and why each of the following factors would influence current aggregate demand in the United States: a. increased fe

ar of recession b. increased fear of inflation c. rapid growth of real income in Canada and Western Europe d. a reduction in the real interest rate e. a higher price level (Be careful)
Business
1 answer:
sukhopar [10]2 years ago
6 0

The effects of the given factors on current U.S. aggregate demand would be:

  • a. Lower current aggregate demand (AD).
  • b. Higher current AD.
  • c. Higher current AD.
  • d. Higher current AD.
  • e. Lower current AD.

<h3>What affects Aggregate Demand?</h3>

When there is an increased fear of recession, aggregate demand drops as people want to save money for the recession. A higher price level will make things more expensive so AD drops as well.

When there is a fear of inflation, people increase spending so they can buy goods before prices increase.

Real income growth in other countries will lead to higher exports which will increase national wealth and therefore allow consumers to purchase more goods.

An reduction in real interest rates makes loans cheaper to be acquired and spent on consumption.

Find out more on aggregate demand at brainly.com/question/1490249.

#SPJ1

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Ann is trying to decide which one of two job offers she will accept. Several items are presented below: Job Offer A(1)Base Salar
andrew-mc [135]

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5 0
3 years ago
The MU/P ratio for good X is greater than the MU/P ratio for good Y. To achieve consumer equilibrium, the consumer reallocates d
uysha [10]

Answer:

Falls:rises.

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The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.

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3 years ago
A video game system is on sale for 25% off its original price. If the original price is $200, how much money will be saved?​
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Answer:

$50

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