51.Thequantityofaggregategoodsandservicesdemandedriseswhenthe
a.pricelevelrises,becausetheinterestraterises.
b.pricelevelrises,becausetheinterestratefalls.
c.pricelevelfalls,becausetheinterestraterises.
d.pricelevelfalls,becausetheinterestratefalls.
52.Inthecontextoftheaggregate-demandcurve,theinterest-rateeffectreferstotheideathat,whenthepricelevelincreases,
a.therealvalueofmoneydecreases;inturn,therealvalueofthedollarincreasesinforeignexchangemarkets,whichdecreasesnetexports.
b.therealvalueofmoneydecreases;inturn,interestratesincrease,whichdecreasesnetexports.
c.householdsincreasetheirholdingsofmoney;inturn,interestratesdecrease,whichreducesspendingoninvestmentgoods.
d.householdsincreasetheirholdingsofmoney;inturn,interestratesincrease,whichreducesspendingoninvestmentgoods.
53.Asthepricelevelrises,theexchangerate
a.falls,soexportsriseandimportsfall.
b.falls,soexportsfallandimportsrise.
c.rises,soexportsriseandimportsfall.
d.rises,soexportsfallandimportsrise.
54.Otherthingsthesame,ifthepricelevelrises,thendomesticinterestrates
a.rise,sodomesticresidentswillwanttoholdmoreforeignbonds.
b.rise,sodomesticresidentswillwanttoholdfewerforeignbonds.
c.fall,sodomesticresidentswillwanttoholdmoreforeignbonds.
d.fall,sodomesticresidentswillwanttoholdfewerforeignbonds.
55.Otherthingsthesame,ifthepricelevelfalls,domesticinterestrates
a.rise,sodomesticresidentswillwanttoholdmoreforeignbonds.
b.rise,sodomesticresidentswillwanttoholdfewerforeignbonds.
c.fall,sodomesticresidentswillwanttoholdmoreforeignbonds.
d.fall,sodomesticresidentswillwanttoholdfewerforeignbonds.
56.Asthepricelevelrises,theinterestrate
a.falls,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsleft.
b.falls,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsright.
c.rises,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsleft.
d.rises,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsright.
57.Otherthingsthesame,ifthepricelevelfalls,people
a.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangeincreases.
b.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases.
c.decreaseforeignbondpurchases,sothesupplyofdollarsinmarketforforeign-currencyexchangeincreases.
d.decreaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases.
58.Otherthingsthesame,ifthepricelevelfalls,people
a.increaseforeignbondpurchases,sothedollarappreciates.
b.increaseforeignbondpurchases,sothedollardepreciates.
c.increasedomesticbondpurchases,sothedollarappreciates.
d.increasedomesticbondpurchases,sothedollardepreciates.
59.Otherthingsthesame,ifthepricelevelrises,people
a.increaseforeignbondpurchases,sothedollarappreciates.
b.increaseforeignbondpurchases,sothedollardepreciates.
c.increasedomesticbondpurchases,sothedollarappreciates.
d.increasedomesticbondpurchases,sothedollardepreciates.
60.Otherthingsthesame,ifthepricelevelrises,people
a.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangeincreases.
b.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases.
c.decreaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangeincreases.
d.decreaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases.
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