Which of the following would cause a rightward shift in the investment demand curve?
a. An increase in the interest rate.
b. An increase in the rate of capacity utilization.
c. An increase in households' disposable income;
d. An increase in business taxes.
d
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
What is a mixed economy?
What will be an ideal response?
The tournament pay explanation is useful in an attempt to explain why
a. some corporate executives earn amounts higher than their marginal revenue product. b. very few people actually earn the minimum wage. c. political entrepreneurs can generate campaign contributions from businesses outside of their districts. d. people with only a high school education earn less than those with college degrees.
Suppose that more people want Orange Bowl tickets than the number of tickets available. Which of the following statements is correct?
A. If the box office price were raised, the excess demand for Orange Bowl tickets would decrease. B. The box office price is higher than the equilibrium price for Orange Bowl tickets. C. There is a shortage of Orange Bowl tickets at the box office price. D. both a and c E. all of the above