According to the law of diminishing returns
a. Production increases at a decreasing rate
b. Production increases at a increasing rate
c. Production decreases at a decreasing rate
d. Production decreases at an increasing rate
a
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As capital goods depreciate, potential output falls.
Answer the following statement true (T) or false (F)
How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer
What will be an ideal response?
In the market for euros, an increase in U.S. real interest rates tends to
A. cause no change in equilibrium price. B. increase equilibrium price. C. decrease equilibrium price. D. increase excess demand.
Refer to Figure 14.1. Other things equal, a decrease in government spending on infrastructure projects is best represented as a movement from
A) point A to point B. B) point C to point A. C) point C to point B. D) point B to point C.