A decrease in the rate of interest, other things being equal, will cause a:
A. rightward shift of the investment demand curve.
B. movement upward along the investment demand curve.
C. movement downward along the investment demand curve.
D. leftward shift of the investment demand curve.
Answer: C
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Macroeconomics
A) studies the behavior of the economy as a whole. B) involves the interaction between different countries in specific markets. C) studies the behavior of individual consumers, firms and markets. D) studies how computer automation has changed economics.
Movie theaters usually set lower prices for children than for adults because
A) children can be served at lower costs. B) they expect to make up the loss on the sale of refreshments. C) they think the price elasticity of demand for movie tickets is quite elastic for children at the regular or adult price. D) they want to get young people into the habit of attending movies.
From the social perspective, a major criticism of oligopolies is that
A) successful collusion leads to a monopoly-like outcome. B) price wars usually break out. C) advertising hardly ever occurs. D) cartels are unstable.
Assume initially this firm is at point A. The following would be a reason for a movement to point B.
A. Wages go up and per unit capital costs go up. B. Both wages and per unit capital costs go down. C. Output decreases. D. Wages go down and per unit capital cost go up.