An increase in interest rates will generally lead to a(n) ____ in present investment and a(n) ____ in future income and production.

A. decrease, decrease
B. decrease, increase
C. increase, decrease
D. increase, increase


Answer: A

Economics

You might also like to view...

Which of the following is a characteristic of an LDC?

a. Capital flight. b. Vicious circle of poverty. c. Lack of entrepreneurs. d. All of these.

Economics

Which of the following industrial countries experienced a relatively slower growth of real GDP in the latter half of the 1990s?

a. Canada b. United States c. Italy d. France e. Japan

Economics

In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. Refer to the information. For a purely competitive firm:

A. marginal revenue will graph as an upsloping line. B. the demand curve will lie above the marginal revenue curve. C. the marginal revenue curve will lie above the demand curve. D. the demand and marginal revenue curves will coincide.

Economics

In 2014, output per capita in the United States was approximately equal to

A) $15,500. B) $25,800. C) $43,800. D) $54,592.

Economics