According to classical economists, the relationship between the amount of funds firms invest and the interest rate is
A) direct.
B) inverse.
C) indirect.
D) independent.
B
You might also like to view...
During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because
A) with higher incomes and more older Americans, we have moved rightward along our demand curve for drugs. B) with higher incomes and more older Americans, the demand curve for prescription drugs has shifted rightward. C) more new firms entered the pharmaceutical industry each year, which caused a rightward shift in the supply curve of prescription drugs. D) Both answers A and C are correct.
When the United States exports a good, U.S. consumer surplus ________ and U.S. total surplus ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
If Joe buys a coffee at Starbucks, his money serves as a
A) unit of accounting. B) standard of deferred payment. C) store of value. D) medium of exchange.
Moral Hazard describes a situation in which
a. buyers or sellers react to market signals by altering their behavior in ways that generate adverse market outcomes b. an action by an individual that endangers others c. an activity destroys all market outcomes d. rational behavior is removed from market decision making e. irrational behavior creates perverse market outcomes