Other things constant, countries with higher investment rates will
A) have lower standards of living.
B) tend to have higher incomes in the future.
C) have to use central government planning to allocate investment.
D) have to impose high taxes in order to finance the investment.
B) tend to have higher incomes in the future.
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Explain how does an increase in real interest rates affect the components of AE
What will be an ideal response?
An excise tax
A) acts as a negative incentive to consume that good or service. B) is illegal in Florida, Georgia, and Alaska. C) is often used to encourage the use of a good. D) is a value added tax (VAT).
An increase in the capital stock will:
A. shift the production function downward. B. shift the production function upward. C. flatten the production function. D. steepen the production function.
If the price of hybrid cars declines by 70 percent, the quantity demanded will _____ and the demand for conventional gasoline engine automobiles will _______.
Fill in the blank(s) with the appropriate word(s).