The planned investment function will shift upward if
A. the interest rate rises.
B. business expectations become more optimistic.
C. the existing stock of capital falls.
D. real disposable income decreases.
Answer: B
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In the 1970s, the U.S. experienced stagflation. What is stagflation?
a. Low inflation and low unemployment b. Low inflation and high unemployment c. High inflation and high unemployment d. High inflation and low unemployment
Which of the following equations is equivalent to the equation S - NX = I?
A. S - I = KI B. S + I = NX - KI C. S + KI = I D. S - KI = NX
According to supply-side economics, the government needs to focus on policies to
A. decrease demand. B. decrease supply. C. stimulate supply. D. stimulate demand.
___ contains the information or meaning the source hopes to convey
Fill in the blank(s) with the appropriate word(s).