If the rate of interest increases, firms will most likely respond by
A. increasing investment.
B. decreasing investment.
C. not changing investment.
D. increasing capital stock.
Answer: B
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The Doing Business reports provide information on ________
A) the size of a country's national debt B) the rate of inflation C) the independence of individual central banks D) how easy it is to conduct business in different parts of the world
After analyzing his opponent a tennis player decides to serve 10% of his serves to the left, 50% of his serves to the right, and 40% of his serves at the body of his opponent. This illustrates a
A) deterministic strategy. B) dominant strategy. C) mixed strategy. D) non-game theoretic problem.
If actual real GDP is greater than the equilibrium level of real GDP (i.e., the aggregate expenditures function is below the 45-degree line), what happens to restore equilibrium to the economy?
On an aggregate level, free trade produces a net __________ and restricted trade produces a net __________
A) loss; loss also B) benefit; benefit also C) benefit; loss D) loss; benefit