Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quickly and with fewer defects, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; decrease
B. decrease; increase
C. increase; not change
D. increase; increase
Answer: D
You might also like to view...
Open-market operations, changes in reserve requirements, changes in the discount rate, and changes in the interest rate on reserves are known as
A) goals. B) intermediate targets. C) instruments. D) derivatives.
Which of the following generate an income that would be excluded from the GDP of an economy?
a. A professional working in small start-up firm b. A person selling marijuana to patients with medical prescriptions c. A person selling electronic guides to tourists d. A farmer selling oranges to a fruit juice manufacturer
When economists say the supply of a product has decreased, they mean that
a. the supply curve has shifted to the left. b. the product price has decreased, and as a consequence, suppliers are producing less of the product. c. producers are now willing to sell more of this product at each possible price. d. the supply curve has shifted to the right.
What is the substitution effect for leisure demand?
What will be an ideal response?