All of the following would cause the investment function relating investment to the interest rate to shift EXCEPT
A. a change in productive technology.
B. a change in producer expectations of future profit.
C. a change in planned capital goods expenditure.
D. a change in the real interest rate.
Answer: D
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What will be an ideal response?
Some of the systematic mistakes that people make include
a. being overconfident. b. placing too much weight on events that are more vivid compared to those with greater statistical probability. c. being generally unwilling to change their minds. d. All of the above are correct.
Briefly explain why payroll taxes are a regressive tax.
What will be an ideal response?
Which of the following is true for the law of demand?
A. Sellers increase the quantity of a good available as the price of the good increases. B. An increase in price results from false needs. C. There is an inverse relationship between the price of a good and the quantity of the good demanded. D. Prices increase as more units of a product are demanded.