Please answer all the questions thank you Question 13 1 pts

Please answer all the questions, thank you.

Question 13 1 pts The interest rate effect predicts that higher prices: O make it more expensive to borrow, leading to higher interest rates and less investment. O make people worse off by reducing the value of their wealth, leading them to save more and spend less. O decrease borrowing, leading to higher interest rates and less investment. O decrease borrowing, leading to lower interest rates and more investment. increase borrowing, leading to higher interest rates and less investment. Question 14 1 pts The aggregate demand curve will shift rightward when there is: O a decrease in government spending. O a decrease in incomes abroad O a tax increase. O the expectation that future consumer income will rise.

Solution

a) \"B\"

Make people worse off by reducing the value of their wealth forcing them to save more and spend less.

b) \"D\"

An expectation that the future income will rise.

c) \"B\"

ITs a positive shock which will increase the supply increasing the GDP.

d) The purchasing power will decline with an increase in the price so people will demand less.

e) \"Total spending.\" increase in a price decrease total spending.