The difference between the investment demand curve and the investment schedule is that the former shows:
A. A direct relationship between investment and interest rate, while the latter shows no
correlation between investment and income
B. An inverse relationship between investment and interest rate, while the latter shows no correlation between investment and income
C. A direct relationship between investment and income, while the latter shows no correlation
between investment and interest rate
D. An inverse relationship between investment and income, while the latter shows no
correlation between investment and interest rate
B. An inverse relationship between investment and interest rate, while the latter shows no correlation between investment and income
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Typically, the unemployment rate ________ during a recession and ________ during an expansion.
A. rises; does not change B. rises; falls C. rises; rises even more D. falls; rises
The current exchange rate system for most currencies is described most accurately as one of
a. fixed exchange rates. b. freely flexible exchange rates. c. gold standard rates. d. dirty or managed floating.
In the supply-and-demand diagram of the market for peanut butter, the equilibrium point has moved down and to the right. What could have caused this?
A) a fall in the price of peanuts B) a rise in the price of peanuts C) a rise in income, assuming that peanut butter is an inferior good D) a shift in preferences toward peanut butter