Higher interest rates motivate:
A. firms to invest less in new factories and working capital.
B. firms to invest more in new factories and working capital.
C. individuals to spend more on consumption goods.
D. individuals to spend more on capital goods.
A. firms to invest less in new factories and working capital.
You might also like to view...
A country's factors of production include its:
a. capital. b. natural resources. c. labor, capital, and natural resources. d. labor.
In reality, all economic systems are
A. mixed. B. capitalistic. C. democratic. D. socialistic.
In general, state and local taxes tend to be
A. Flat. B. Proportional. C. Progressive. D. Regressive.
Which of the following supports the skeptics doubts about the idea that a "New Economy" had emerged in the late 1990s?
A) In early 2000, investment in computer equipment turned to negative growth. B) A drop in productivity growth in 2001 was followed by a bounce-back of productivity growth in early 2002. C) The opinion of Alan Greenspan, Chairman of the Federal Reserve System, concerning the pace at which technological innovations are being applied D) None of the above.