Your textbook authors argue that, other things constant, entrepreneurs respond to a fall in interest rates by
A) paying less attention to long term profitability.
B) engaging in irrational business behavior.
C) investing in capital goods.
D) making all of the above choices.
C
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9
A) too many consumers want to buy pecans. B) economic surplus is maximized. C) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. D) the quantity supplied is greater than the economically efficient quantity.
The Gini coefficient measures:
A. income inequality. B. poverty prevalence. C. average income per person. D. change in average income per person over time.
Which of the following was an effect of the affordable housing law in the cities Palo Alto, Laguna Beach, and Irvine?
a. It imposed a per-unit tax on builders of mid-range houses. b. The law had a significant impact on the mid-range houses. c. It imposed a per-unit tax on builders of expensive new houses. d. The law had a significant impact on the supply of mid-range houses.