In an open economy, an increase in the government's budget deficit will ________ the domestic real interest rate and ________ the level of capital investment in the country, holding other factors constant.
A. decrease; decrease
B. increase; decrease
C. increase; increase
D. decrease; increase
Answer: B
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Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00What is the value added of Florida Jam Company?
A. $2.00 B. $1.25 C. $0.50 D. $0.75
The value of an additional baker to a bakery is equal to the
A) price of bread. B) value of marginal product of the baker. C) baker's marginal productivity in terms of loaves of bread. D) marginal cost of making an additional loaf of bread.
In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions can affect other divisions d. Managers typically do not have the incentives to run their division efficiently
If Smith believes the economy is self-regulating, then Smith
A) is less likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones, who believes the economy is not self-regulating. B) is more likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones, who believes the economy is not self-regulating. C) will believe that there is zero crowding out, too. D) will believe that wages are inflexible downward, too. E) b and d