In 2008-2009 the U.S. economy provided a
a. healthy climate for investment spending.
b. change in aggregate demand that fostered more capital formation.
c. sluggish climate for investment spending.
d. booming economy that spurred investment spending.
c
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Arturo runs a Taco Bell franchise. He is selling 250 Gordita Supremes per week at a price of $2.75. If he lowers the price to $2.70, he will sell 251 Gordita Supremes
What is the marginal revenue of the 251st Gordita Supreme? If selling the extra Gordita Supreme adds $0.20 to Arturo's costs, what will be the effect on his profit from selling 251 Gordita Supremes instead of 250?
The "crowding-in" effect suggests that
A. government spending is increasing at the expense of private investment. B. private investment is encouraged by economic expansion. C. private investment is decreasing because of government spending. D. consumption is increasing at the expense of investment.
If actual inflation is correctly expected and built into people's wage and price-setting decisions, the Phillips curve:
A. remains a downward sloping line. B. becomes a vertical line. C. becomes an upward sloping line. D. becomes a horizontal line.
If the equation y = -10 + 2.5x was plotted:
A. the vertical intercept would be -10. B. the slope would be -7.5. C. it would graph as a downsloping line. D. the slope would be -10.