When the price level decreases, the resulting _______ in the interest rate will _____ investment.
a) decrease; increase
b) decrease; decrease
c) increase; increase
d) increase; decrease
e) none of the above
Answer: a) decrease; increase
You might also like to view...
Over the past five decades, the U.S. civilian unemployment rate has varied between, roughly, ________
A) 3% and 11% B) 55% and 60% C) 6% and 8% D) 0.2% to 0.4%
A monopoly which arises from significant economies of scale is referred to as a
A) monopolistic competitor. B) strategic resource monopoly. C) natural monopoly. D) patent monopoly.
Economists emphasize the importance of equilibrium in markets because
a. trading in markets can only occur at the equilibrium price and quantity b. the behavior of buyers and sellers will automatically guide the market toward the equilibrium price and quantity c. all buyers and sellers are better off at the equilibrium point than any other price and quantity combination d. it represents a compromise between sellers hoping for low prices and buyers searching for high prices e. it is the only price-quantity combination that guarantees that the poorest members of society can purchase the good or service
When a government splits a natural monopoly vertically, it is breaking the company up:
A. along its stages of production. B. into smaller companies providing the same goods. C. in order to maximize its profits. D. in order to capture all efficiencies possible.