A decline in the real interest rate will:
A. increase the amount of investment spending.
B. shift the investment schedule downward.
C. shift the investment demand curve to the right.
D. shift the investment demand curve to the left.
A. increase the amount of investment spending.
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The minimum wage in 2008 was $6.55 cents until July 2008 when it was raised to $7.25. If the minimum wage in June was below the equilibrium wage and the increased wage in July was above the equilibrium wage, then
A) firms' producer surplus was greater in June than in July. B) unemployment was unaffected by the increase. C) the deadweight loss was greater in June than in July. D) employment of low-skilled workers increased in July.
"The Balance of payments is always balances." Discuss
What will be an ideal response?
The value of all final goods and services produced domestically in the "underground economy" are not recorded as a part of GDP because production and sale of these goods are either illegal or hidden from tax authorities
Indicate whether the statement is true or false
If 50 percent of the population in a country is employed and average labor productivity equals $30,000, then real GDP per person equals:
A. $50,000. B. $30,000. C. $15,000. D. $60,000.