Changing short-term interest rates have a(n):
A. strong and immediate impact on household purchase decisions.
B. no impact on household purchasing decisions.
C. none of the answers provided is correct.
D. somewhat modest impact on household purchasing decisions.
Answer: D
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Assuming that the government can act immediately before the multiplier takes effect, then to offset an increase in investment by $1 billion, government purchases must be:
A. decreased by $2 billion. B. increased by $1 billion. C. decreased by $1 billion. D. decreased by $0.5 billion.
Which of the following is an example of a topic studied by macroeconomists?
A) Utility maximization by a consumer B) Decision making by a producer C) Aggregate demand in an economy D) Price determination by a firm
The World Bank specializes in making loans to
A) industrialized nations. B) communist nations. C) developing nations. D) African nations.
Refer to the following table which gives the demand and cost data for a price-setting firm:
A. $104 B. $107 C. $106 D. $105 E. $108