The investment function would shift outward to the right if
A. there was a decrease in business taxes.
B. there was more uncertainty about future economic conditions.
C. real disposable income decreased.
D. interest rates decreased.
Answer: A
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When economists speak of preferences as influencing demand, they are referring to
A) directly observable changes in prices and income. B) an individual's attitudes toward goods and services. C) the excess of wants over the available supplies. D) the availability of a good to all income classes.
What is an important difference between certificates of deposits (CDs) worth less than $100,000 compared to those worth $100,000 or more?
What will be an ideal response?
An advantage of automatic stabilizers is that
A. they are built into the economy by legislation and therefore are already in place when economic conditions change. B. they give the government an opportunity to spend extra tax money collected. C. they intensify changes in the business cycle. D. they produce balanced budgets.
The long-run supply curve is upward sloping in a(n)
a. decreasing-cost industry b. increasing-cost industry c. constant-cost industry d. labor-intensive industry e. capital-intensive industry