The investment demand curve portrays an inverse (negative) relationship between:
A. investment and real GDP.
B. the real interest rate and investment.
C. the nominal interest rate and investment.
D. the price level and investment.
B. the real interest rate and investment.
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A union can be viewed as a monopoly seller of a service. What are the three wage and employment strategies the union might use?
What will be an ideal response?
A firm can stay in business while taking a loss in the short run as long as it covers its
a. fixed costs. b. variable costs. c. fixed and variable costs. d. A firm can never stay in business when it experiences losses.
If an amusement park that is highly profitable during the summer months is unable to cover its variable costs during the winter months, it should
a. raise its prices during the winter months. b. lower its prices during the summer months. c. operate during the summer but shut down during the winter months. d. operate during all months of the year as long as its profits during the summer exceed its losses during the winter.
The contestable market model of oligopoly bases pricing and output decisions on:
A. the threat of new entrants into the market. B. market structure. C. market share. D. the degree of product differentiation.