The potential positive feedback that government spending may have on investment is known as the _____. The potential negative effect that government spending may have on investment is known as the _____ effect
Fill in the blank(s) with correct word
investment accelerator, crowding-out
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When oranges increase in price, the income effect
A) decreases the consumption of oranges only if oranges are a normal good. B) decreases the consumption of oranges only if oranges are an inferior good. C) always increases the consumption of oranges. D) always decreases the consumption of oranges.
Explain import substitution
What will be an ideal response?
Which of the following is true concerning cost curves?
a. TC + TFC = TVC b. AFC + AVC = ATC c. MC + AVC = TVC d. TC – MC = TFC e. ATC + MC = TC
Other things the same, in the open-economy macroeconomic model, which of the following would make China's net capital outflow increase?
a. an increase in U.S. interest rates b. an increase in Chinese interest rates c. an appreciation of the Chinese yuan d. None of the above is correct.