Low interest rates will persuade corporations to invest more right now
a. True
b. False
Indicate whether the statement is true or false
True
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The aggregate production function shows a(n) ________ relationship between ________ and output
A) decreasing; capital stock B) decreasing; labor C) constant; labor D) increasing; capital stock
Suppose the nominal interest rate on a savings bond is 7 percent a year and the inflation rate is 4.5 percent a year. How much is the real interest rate?
A) 4.5 percent B) 1.56 percent C) 2.5 percent D) 7 percent E) 11.5 percent
The United Auto Workers union is largely responsible for the historically high pay of American auto workers by negotiating pay raises above those obtained by workers in other industries. In addition to increasing the pay of auto workers, what other long-run effect would this high pay have on the use of auto workers?
Fixed investment is
A. when a firm accumulates profits. B. dissavings. C. an expenditure by firms on new machines that are expected to produce income in the future. D. when a firm adds to its inventories of goods.