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28 Sep 2019
For each of the following, place an X to indicate the component affected and an R (increase) or an L (decrease) to show whether the AD curve shifts Right or Left. Consider only the primary effect. Consumption (C), Investment (I), Government spending (G), and Net Exports (NE):
Factor
C
I
G
NE
R or L
Real interest rate decreases
Consumers and executives become more confident in the economic future
The stock market rises
China's economic growth slows
Congress increases spending in the current fiscal year
Tariffs are imposed by many countries to protect domestic employment
The US Import/Export bank eliminates guarantees for loans to foreign airlines to purchase Boeing aircraft
Congress enacts tax incentives for firms purchasing new equipment and facilities
For each of the following, place an X to indicate the component affected and an R (increase) or an L (decrease) to show whether the AD curve shifts Right or Left. Consider only the primary effect. Consumption (C), Investment (I), Government spending (G), and Net Exports (NE):
Factor |
C |
I |
G |
NE |
R or L |
Real interest rate decreases |
|||||
Consumers and executives become more confident in the economic future |
|||||
The stock market rises |
|||||
China's economic growth slows |
|||||
Congress increases spending in the current fiscal year |
|||||
Tariffs are imposed by many countries to protect domestic employment |
|||||
The US Import/Export bank eliminates guarantees for loans to foreign airlines to purchase Boeing aircraft |
|||||
Congress enacts tax incentives for firms purchasing new equipment and facilities |
Darryn D'SouzaLv10
28 Sep 2019