Relationships Flashcards
If Human Capital increases, then Economic growth
Increases
If Demand increases then the Equilibrium price
increases
If Supply increases then the Equilibrium price
decreases
If Consumer Spending increases then the Real GDP
increases
If Interest rates increase then Investment will
decrease
If Inflation increases then Real wages will
decrease
If Aggregate demand increases then Price level will
Increase
If SR Aggregate supply increases then the Price level will
decrease
If Government Spending increases then RealGDP will
increase
If Taxes go up then Disposable income will
Go down
If MPC goes up then the Spending Multiplier will
Go up
If Interest Rates increase then Bond prices will
decrease
If the Money Supply increases then the Nominal interest rates will
decrease
If the reserve requirements increase then the Money supply will
decrease
If the discount rate goes up then the Money supply will
Go down
If Central bank buys bonds then Money supply will
increase
If Interest on reserves goes up then AD goes
down
If Inflation goes up then Real interest rates will
go down
If Deficit spending increases then Real interest rates go
up
If Capital stock increases then Economic growth will
increase
If a currency appreciates then that country’s net exports will
decrease
If interest rates go up then Net capital in flow will go
up
