Reset selection question 5 of 252 points when the

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Question 5 of 252 Points
When the supply of credit is fixed, an increase in the price level stimulates the demand for credit,
which in turn reduces consumption and investment spending. This argument is called the:

A. real balances effect.

B. interest-rate effect.

C. net exports effect.

D. substitution effect.
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Question 6 of 252 Points
Assuming prices and wages are fully flexible, the aggregate supply curve will be:
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Question 7 of 252 Points
In Exhibit 10-4 which of the following is not consistent with a shift in the aggregate demand
curve from AD1 to AD2?
Exhibit 10-4 Aggregate supply and demand curves

an increase in government spending

D.
an increase in net exports
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Question 8 of 252 Points
To illustrate the classical argument that "supply creates its own demand," the aggregate supply
curve should be drawn: