When drawn against the real interest rate, the optimal investment schedule shifts to the right if
A) current total factor productivity z increases.
B) current total factor productivity z decreases.
C) future total factor productivity z' increases.
D) future total factor productivity z' decreases.
C
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The Latin expression Ceteris paribus means:
a. everything else being equal. b. economic model. c. economists are partly right. d. partial scarcity is certain.
Heuristic models are:
A. models expressed informally in words. B. highly mathematical models that are impossible to solve. C. based on scattergrams of two variables. D. models expressed informally by graphs.
Consider two people involved in a marriage or relationship. If, when one person is caught cheating on their agreement, the other cheats once as a punishment. In this example, then they are using a:
A. tit-for-tat strategy. B. grim-trigger strategy. C. dominant strategy. D. predatory strategy.
When the price of hamburger went from $3 to $4 a pound, the quantity demanded of buns changed from 30 to 25 packages a day. The cross-price elasticity of demand for buns (using the initial value formula) is:
A. 1.4. B. 0.5. C. -0.5. D. -1.4.