If businesses expect the economic activity to expand
A) the planned investment function relating investment to the interest rate will shift to the left.
B) the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve.
C) the planned investment function relating investment to the interest rate will steepen.
D) the planned investment function relating investment to the interest rate will shift to the right.
D
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In order for barter trades to occur, there must be a
A. singularity of interests. B. bargaining intermediary. C. double coincidence of wants. D. sufficient supply of cash.
Explain the three possible ranges for price elasticity of demand
What will be an ideal response?
Protectionism arises because
a. people misunderstand the benefits of free trade b. trade generally harms some groups in society c. the costs of free trade outweigh the benefits for all groups in society d. the costs of trade for both exporting and importing nations outweigh the benefits e. of a lack of comparative advantage
In the case of a technology spillover, the government can encourage firms to internalize a positive externality by
a. taxing production, which would decrease supply. b. taxing production, which would increase supply. c. subsidizing production, which would decrease supply. d. subsidizing production, which would increase supply.