When interest rates are free from central bank manipulation, and fall due to an increase in household savings, this

A) provides an incentive for government to create a budget surplus.
B) sends a "green light" signal for businesses to increase investment.
C) has little impact on the macroeconomy.
D) creates a "cluster of errors" and an inevitable recession.


B

Economics

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a. Nationalization of all enterprises b. export of technology c. free economic zones d. import substitution e. industrial planning

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A corporation can elect to allocate corporate profits into either

A. Interest payments or dividends. B. Capital gains or dividends. C. Bonds or stocks. D. Dividends or retained earnings.

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As used in the text, the "composite good" refers to:

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