If the interest rate rises, then firms' investment spending:
a. falls.
b. also rises.
c. remains unchanged
d. reacts unpredictably.
a
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In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?
A) market system B) socialist system C) centrally planned system D) command system
According to the text, the government can use aggregate demand management policies to reduce unemployment rates. A byproduct of this policy will be
a. an increase in the price level. b. a decrease in real GDP. c. a decrease in the price level. d. an increase in the budget surplus.
In anonymous surveys, on average people rate themselves as "above average" with regard to characteristics such as intelligence, perceptiveness, and driving ability. According to behavioral economics, this contradictory result would most likely be caused
by the: A. overconfidence effect. B. self-serving bias. C. confirmation bias. D. hindsight bias.
According to the above table, if real Gross Domestic Product (GDP) is $25,000, planned saving equals
A. $2,000. B. $4,000. C. $5,000. D. $3,000.