If the quantity of investment has fallen but interest rates have risen, then
a. this cannot be explained in the classical model.
b. savings fell.
c. savings rose.
d. investment demand rose.
B
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From Figure 6-2, we can determine that demand is ____ between P = 12 and P = 10 and ____ between P = 6 and P = 4.
A. elastic; elastic B. elastic; inelastic C. inelastic; elastic D. inelastic; inelastic
An example of a capability considered in the capabilities approach would be:
A. to have the ability to purchase a luxury item you really want. B. being able to afford appropriate healthcare required for a healthy life. C. to be able to afford to travel freely. D. to have adequate food and shelter.
You own a building that has four possible uses: a tailor shop, a pharmacy, a sports bar, and an antique mall. The building's value in each use is $4,000; $6,000; $8,000; and $10,000, respectively. You decide to open a sports bar. The opportunity cost of using this building for a sports bar is
A. $10,000, the value if you rented the building to someone else to use as an antique mall. B. $4,000, the value if the building is used as a tailor shop. C. $6,000, the value if the building is used as a pharmacy. D. $20,000, the sum of the values if the building is used for a tailor shop, a pharmacy, or an antique mall.
In the U.S., the Federal government runs a chronic budget deficit, whereas many state and local governments do not, because:
A. Many state and local governments have balanced-budget laws that make deficits illegal, while the Federal government does not B. Voters in Federal elections tend to favor budget deficits, while voters in state and local elections do not C. Many state and local governments face stricter accounting standards than the Federal government does D. Elections at the state and local levels tend to occur more frequently than at the Federal level