If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:
A. more investment will be forthcoming when i exceeds r.
B. less investment will be forthcoming when r rises.
C. r will fall as more investment is undertaken.
D. r will exceed i at all possible levels of investment.
C. r will fall as more investment is undertaken.
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For a major country with extensive capital flows, what is the effect of an increase in interest rates?
A. A currency depreciation and increased net exports B. A currency depreciation and reduced net exports C. A currency appreciation and increased net exports D. A currency appreciation and reduced net exports
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
In a progressive tax system, ________
A) the average tax rate equals the marginal tax rate B) the marginal tax rate exceeds the average tax rate C) the average tax rate exceeds the marginal tax rate D) the average tax rate is equal for all taxpayers
Generally, there is a strong positive correlation between per capita GNP and other measures of human development
a. True b. False Indicate whether the statement is true or false