If planned investment is ________ to changes in the interest rate, the planned investment schedule is vertical.
A. perfectly responsive
B. negatively related
C. positively related
D. perfectly unresponsive
Answer: D
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Suppose an individual has state-independent tastes and invests in risky stocks rather than safe bonds. We can infer that he must be risk loving.
Answer the following statement true (T) or false (F)
Composites of stock prices
A. are completely random and unpredictable. B. fluctuate randomly around a rising trend. C. are destabilized by speculations. D. show no trend but fluctuate widely.
The coordination task of dividing products among consumers is a problem of
A. output selection. B. production planning. C. distribution. D. market segmentation.
If the demand for flat screen television sets is rising while at the same time the price of a flat screen TV is falling, there is evidence of:
A. constant returns to scale. B. diseconomies of scale. C. economies of scale. D. diminishing marginal product.