The accelerator theory can explain the paradox that both interest rates and investment rise and fall in concert during the business cycle if
A) the effect of changes in Y effect on In dominate the effect of interest rates on investment.
B) the LM curve is constant.
C) the IS curve is constant.
D) the effect of changes in interest rates on In dominate the effect of changes in Y on In.
A
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Refer to Figure 11-14. Consider the following statements:
a. For each country, the marginal product per dollar spent on labor equals to the marginal product per dollar spent on capital. b. The price of labor is relatively higher in the United States than in China and the price of capital is relatively lower in the United States than in China. c. The price of labor and the price of capital are relatively higher in the United States than in China. Based on the figure, which of the statements above is true? A) All of the statements are true. B) statements b and c only C) statements a and c only D) statements a and b only
Which of the following statements is true?
a. A monopsony is the only employer of a factor of production. b. A monopsony will pay workers a higher wage and employ fewer workers than a competitive labor market. c. A monopsony has a marginal factor cost curve which lies below its supply curve of labor. d. Unions are becoming a greater influence in American labor markets. e. All of these.
For a competitive market in the long run,
A. Economic profit is positive. B. Economic losses induce firms to shut down. C. Economic profits induce firms to enter until profits are normal. D. Accounting profit is zero.
A cooperative game is
A) companies colluding in order to make higher than competitive rates of return. B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry. C) a game in which firms will not negotiate in any way. D) when plans made by firms are known as game strategies.