An increase in the budget deficit
a. reduces investment because the interest rate rises.
b. reduces investment because the interest rate falls.
c. raises investment because the interest rate rises.
d. raises investment because the interest rate falls.
a
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Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering both country's production possibilities frontiers, we can conclude that Country B will specialize in:
A. trucks, and be willing to accept no fewer than 3 cars for each truck.
B. cars, and be willing to give no more than 3 cars for each truck.
C. trucks, and be willing to accept no more than 3 cars for each truck.
D. cars, and be willing to give no fewer than 3 cars for each truck.
The consumer price index tires to measure how much consumer incomes must rise in order to maintain a constant
a. level of real GDP. b. ratio of consumption to GDP. c. ratio of net exports to GDP. d. standard of living.
Higher interest rates motivate:
A. individuals to spend more on consumption goods. B. individuals to spend more on capital goods. C. firms to invest less in new factories and working capital. D. firms to invest more in new factories and working capital.
If the price of beef jerky rises, then the substitution effect due to the price change will cause
A) an increase in the demand for beef jerky. B) an increase in the demand for hot sauce, a complement for beef jerky. C) an increase in the quantity of beef jerky demanded. D) a decrease in the quantity of beef jerky demanded.