The first reason for the downward slope of the aggregate demand curve is Pigou's wealth effect. Recall that the nominal value of money is fixed, but the real value is dependent upon the price level. This is because for a given amount of money, a lower price level provides more purchasing power per unit of currency. When the price level falls, consumers are wealthier, a condition which induces more consumer spending. Thus, a drop in the price level induces consumers to spend more, thereby increasing the aggregate demand. The second reason for the downward slope of the aggregate demand curve is Keynes's interest-rate effect. Recall that the quantity of money demanded is dependent upon the price level. That is, a high price level means that it takes a relatively large amount of currency to make purchases. Thus, consumers demand large quantities of currency when the price level is high. When the price level is low, consumers demand a relatively small amount of currency because it takes a relatively small amount of currency to make purchases. Thus, consumers keep larger amounts of currency in the bank. As the amount of currency in banks increases, the supply of loans increases. As the supply of loans increases, the cost of loans--that is, the interest rate--decreases. Thus, a low price level induces consumers to save, which in turn drives down the interest rate. A low interest rate increases the demand for investment as the cost of investment falls with the interest rate. Thus, a drop in the price level decreases the interest rate, which increases the demand for investment and thereby increases aggregate demand. The third reason for the downward slope of the aggregate demand curve is Mundell-Fleming's exchange-rate effect. Recall that as the price level falls the interest rate also tends to fall. When the domestic interest rate is low relative to interest rates available in foreign countries, domestic investors tend to invest in foreign countries where return on investments is higher. As domestic currency flows to foreign countries, the real exchange rate decreases because the international supply of dollars increases. A decrease in the real exchange rate has the effect of increasing net exports because domestic goods and services are relatively cheaper. Finally, an increase in net exports increases aggregate demand, as net exports is a component of aggregate demand. Thus, as the price level drops, interest rates fall, domestic investment in foreign countries increases, the real exchange rate depreciates, net exports increases, and aggregate demand increases.
Answer: The correct answer is: Intergenerational mobility.
Explanation: Intergenerational mobility can be understood as the changes in social positions that may occur in a family from one generation to the next. These changes can take place for a great number of reasons, including education, lifestyle choices and economic context.
<u>In this particular case, Jess is experiencing Intergenerational mobility because she earned an advanced degree and secured a prestigious job, distacing herself from the social position that her parents had.</u>
The nation that attended the Congress of Panama in 1826 in the options was A. Columbia.
<h3>What was the Congress of Panama?</h3>
In 1826, Simón Bolívar called for the Congress of Panama which was to help the newly independent Latin American republics to come up with a unified policy.
Columbia attended but Brazil did not. Chile and Argentina did not like how influential Simón Bolívar was and so did not attend either.
Idioms are words, groups of words used to refer to mean something that is not deducible from the given words. It gives a metaphorical meaning of what is intended.
In the given passage from "The New Village", the idiom "took a seat" means Uncle Moti and Mina sat down at the tea shop. The phrase "took a seat" does not mean to literally carry or take a seat but it refers to sitting, the act of sitting one down.
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