The flatter the planned investment schedule (curve)
A) the smaller is the change in planned investment as a result of changes in the interest rate.
B) the smaller is the crowding-out effect.
C) the larger is the crowding-out effect.
D) the larger is the change in money demand as a result of changes in the interest rate.
Answer: C) the larger is the crowding-out effect.
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Regulation that keeps the rate of return in the industry competitive is known as
A) rate-of-return regulation. B) cost-of-service regulation. C) social regulation. D) deregulation.
Refer to Table 2-12. Guatemala has a comparative advantage in the production of
A) sailboats. B) canoes. C) both products. D) neither product.
Paul Bergeron and Virginia Clacey each own a 100-acre soybean farm in Soyburg, Illinois. Together they grow 1/1,000th of 1 percent of the nation's soybeans. When they merge, it will
a. raise the price of soybeans in the U.S. b. be a vertical merger c. reduce competition in the soy market d. increase the market power of Paul and Virginia e. probably go unnoticed outside of Soyburg
The natural rate of unemployment is impervious to economic policy
a. True b. False Indicate whether the statement is true or false