What would happen if the German economy became viewed as a less desirable place for foreign investors to put their money because of fears about the growth of the German public debt?
a. Equilibrium would not change.
b. A lower quantity of financial investment would result.
c. A lower interest rate would result.
d. Interest rates would not change.
b. A lower quantity of financial investment would result.
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A decrease in the supply of labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Refer to Figure 10.9. Other things equal, a negative demand shock is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
An aggregate supply curve that is a vertical line must be:
A. a short-run curve. B. a long-run curve. C. an individual firm's supply curve. D. an individual industry's supply curve.
Suppose that in a perfectly competitive market, the market supply of a good increases. As a result, the individual firm's:
a. supply curve would shift outward and the firm would increase output. b. supply curve would shift inward and the firm would decrease output. c. average-total-cost curve would shift upward and the firm would increase output. d. marginal-revenue curve would shift upward and the firm would increase output. e. marginal-revenue curve would shift downward and the firm would decrease output.