Which of the following would shift the investment demand curve rightward?
a. A lower real interest rate
b. Higher acquisition costs for capital goods
c. Lower acquisition costs for capital goods
d. A higher real interest rate
c. Lower acquisition costs for capital goods
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When a society achieves allocative efficiency, it
A) is not achieving production efficiency. B) is producing that combination of goods and services that society values most highly. C) might or it might not be producing at a point on society's PPF. D) is producing a combination of goods and services whose marginal cost exceeds their marginal benefit. E) is producing the combination of goods and services for which marginal benefit exceeds marginal cost by as much as possible.
"If a natural monopoly is regulated using a marginal cost pricing rule, the firm makes zero economic profit." Is the previous statement correct or incorrect?
What will be an ideal response?
Large countries can improve their welfare by levying a tariff only if it does not
A) encourage rent seeking elsewhere in the economy. B) discourage innovation. C) lead to retaliation by the nation's trading partners. D) All of the above. E) None of the above.
Costing more than the average person's yearly income, the Atlantic passage in the early seventeenth century was roughly
a. £1 b. £10 c. £100 d. £1,000