When the government increases spending (holding taxes constant), the budget balance _____. This causes the interest rate in the market for loanable funds to _____ and investment to _____
Fill in the blank(s) with correct word
falls, increase, decrease
You might also like to view...
If firms are more optimistic that future profits will rise and remain strong for the next few years, then
a. investment spending will fall. b. investment spending will rise. c. investment spending will remain unaffected. d. investment spending will rise and then fall.
The figure above shows the demand and cost curves for a single-price monopoly. What level of output maximizes the firm's economic profit?
A) 0 units B) 20 units C) 30 units D) 50 units
How would you define convergence?
A) tendency for gaps between industrial countries' per-capital incomes to narrow B) tendency for gaps between all countries' per-capital incomes to narrow C) the theory that a crisis in a low-income country will spread to all countries, regardless of debt structure D) the theory that a crisis in a low-income country will spread to only those countries which had lent money to the original country E) tendency for the world distribution of income to be persistently unequal
Basic research: a. usually has a larger immediate payoff than applied research
b. is more practical than applied research. c. is the search for general knowledge without a specific product or procedure in mind. d. is research done by a firm to market a good. e. is research done by a firm during the production of a good.