Which of the following will cause an inward shift of the investment function?
A. an increase in business taxes
B. business people becoming optimistic about the future
C. a decrease in the interest rate
D. innovation that improves production efficiency at every level of output
Answer: A
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Explain how governments restrict international trade and who benefits as well as who loses from the restrictions
What will be an ideal response?
The money market model is concerned with ________ and the loanable funds market model is concerned with ________
A) short-term nominal interest rates; long-term real interest rates B) short-term nominal interest rates; long-term nominal interest rates C) short-term real interest rates; long-term nominal interest rates D) short-term real interest rates; long-term real interest rates
An increased supply of U.S. dollars on the foreign exchange market, all else equal, will result in an appreciation of the U.S. dollar
Indicate whether the statement is true or false
By fixing the mint price of gold among commercial nations under the Gold Standard, the exchange rate risk falls significantly, thus encouraging trade
Indicate whether the statement is true or false