Planned investment spending is _____ related to the interest rate and _____.
A. Negatively; expected GDP
B. Negatively; existing productive capacity.
C. Positively; expected GDP
D. Positively; existing productive capacity
B. Negatively; expected GDP
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Which of the following is true of mercantilism?
A. Mercantilists believed that a nation does not benefit directly from its exports. B. Mercantilists believed that free trade is always beneficial for the trading nations. C. Mercantilists believed that under free trade each of the trading countries benefit equally. D. Mercantilism believed that national well-being was based on national holdings of gold and silver.
Which of the following is not included in U.S. GDP?
a. additions of newly produced output to inventory b. production of U.S citizens working in foreign countries. c. the estimated rental value of owner-occupied housing d. the value of food purchased from a grocery store to make meals at home without pay
Monetary policy is expected to have its greatest impact on ________.
A. government purchases B. gross investment C. exports D. consumption
Which of the following is an accurate statement about supply-side policy?
A. The aggregate supply curve should be left alone. B. The aggregate supply curve should be shifted to the right during periods of inflation and to the left during a recession. C. The aggregate supply curve should be shifted to the right during periods of both inflation and recession. D. The aggregate supply curve should be shifted to the left during periods of inflation and to the right during a recession.