If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 2.5 percent and there is no inflation, what will be the level of investment in the economy?
A) $0 B) $200 C) $600 D) $900
D
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Because fiscal policy affects the quantity that the government borrows in financial capital markets, it not only affects aggregate demand, but it can also affect _____________ rates.
a. interest b. employment c. inflation d. wage
Like the monopolist, the monopolistically competitive firm:
A. sets the price where marginal cost equals marginal revenue; the demand curve doesn't matter. B. is a price taker. C. faces a downward sloping demand curve. D. All of these statements are true.
Kathleen likes avocado and crab dip. After eating avocado and crab dip with four crackers, she switches to cheese with crackers. We can conclude that
A. Kathleen is no longer maximizing her utility. B. at this point cheese and crackers have a higher marginal utility per dollar spent than that of avocado and crab dip with crackers. C. the avocado and crab dip cannot have tasted that good. D. the avocado and crab dip with crackers now has a marginal utility of zero.
In the figure above, which of the following represents a money flow?
A) Goods purchased B) Interest C) Capital D) Services sold E) Goods supplied