Other things equal, a rise in interest rates can be expected to:
A. have no effect upon the quantity of investment.
B. decrease the quantity of investment.
C. increase the quantity of investment.
D. increase equilibrium income.
Answer: B
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The shifting or returning of government economic functions or services to the private sector of the economy is known as
a. laissez-faire. b. privatization. c. deregulation. d. downsizing.
Perfectly inelastic demand curves are vertical
a. True b. False Indicate whether the statement is true or false
Positive market feedback refers to a tendency for
A. price leaders to respond to an increase in market demand by increasing the prices of their products. B. potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating producing more output than the quantities produced by firms already in the industry. C. a particular product to come into favor with additional consumers because other consumers have chosen to purchase the product. D. potential entrants to an oligopolistic industry to respond to entry deterrence strategies by contemplating setting their prices above prices established by firms already in the industry.
Refer to the information provided in Figure 31.2 below to answer the question(s) that follow.
Figure 31.2Refer to Figure 31.2. Suboptimal production occurs when the economy is at Point
A. A. B. B. C. C. D. D.