A decrease in interest rates will
A) shift the investment function relating planned investment to the interest rate to the left.
B) be a movement along the investment function relating planned investment to the interest rate.
C) shift the investment function relating planned investment to the interest rate to the right.
D) have no impact on the investment function relating planned investment to the interest rate.
B
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In the winter quarter at Frozen U. one year, snow falls every Friday night. Students conclude that, on their campus, Fridays cause snow. This hypothesis
A. should more properly be considered a theory. B. assumes that correlation implies causation. C. assumes that causation implies correlation. D. reflects the fallacy of composition.
In the economic way of thinking, information is a scarce economic good because
A) people need more information. B) modern-day capitalism turned information into a tradable commodity. C) it is valuable, and there are opportunity costs to get it. D) a political conspiracy limits its production to keep citizens uninformed.
Savers in the financial system make decisions about how to save their money by following the basic principles of:
A. cost benefit analysis. B. asset valuation. C. risk valuation. D. rate of return on investments.
When can two countries gain from trading two goods?
a. when the first country can only produce the first good and the second country can only produce the second good b. when the first country can produce both goods, but can only produce the second good at great cost, and the second country can produce both goods, but can only produce the first good at great cost c. when the first country is better at producing both goods and the second country is worse at producing both goods d. Two countries could gain from trading two goods under all of the above conditions.