If interest rates increase, what is most likely to happen to the total expenditure schedule?
A. It will increase because G increases.
B. It will decrease because I decreases.
C. It will decrease because (X – IM) decreases.
D. It will increase because I increases.
Answer: B
You might also like to view...
Under monopolistic competition ________
A) many goods and services are not standardized B) prices adjust slowly to equilibrium C) even if there is substantial competition in the market, some firms can set prices D) all of the above E) none of the above
Suppose the official gold value of the Brazilian real changes from 527 reals per ounce to 508 reals per ounce. We can then say that:
a. the Brazilian real has depreciated in value as a consequence of free market fluctuations. b. the Brazilian real has appreciated in value. c. gold is now more expensive to purchase in Brazil than it was before. d. the Brazilian real has been devalued. e. the Brazilian economy is expected to experience rapid inflation.
Which of the following is true?
a. A stockholder owns part of the corporation. b. A stockholder has loaned money to the corporation. c. A stockholder is owed money by the corporation. d. A stockholder must be consulted on all major decisions.
Why are banks using more automatic teller machines (ATMs) and employing fewer human tellers? What economic principle is illustrated about resource markets by this example?
What will be an ideal response?