Question: 1 . Given fixed income ( I ) , when price ( P ) increases, the purchasing power ( I / P ) Answer 1

1.Given fixed income (I), when price (P) increases, the purchasing power (I/P) Answer 1 Question 3increasesdecreases. Consumers experience a Answer 2 Question 3positivenegative wealth effect. Consumers consume and saveAnswer 3 Question 3moreless. Answer 4 Question 3SupplyDemand of the loanable funds market Answer 5 Question 3increasesdecreases, shifting to the Answer 6 Question 3leftright. The equilibrium interest rate goes Answer 7 Question 3updown. It is Answer 8 Question 3cheapermore expensive to borrow and make investment. Investment (I) Answer 9 Question 3increasesdecreases. According to national income identity (Y=C+I+G+NX), aggregate output (Y) Answer 10 Question 3decreasesincreases.

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