In the economy as a whole, lower interest rates are likely to ________ investment and higher interest rates are likely to ________ investment.
A. slow; stimulate
B. stop; stimulate
C. stimulate; slow
D. stimulate; stop
Answer: C
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In the figure above, the DLF curve is the demand for loanable funds curve and the PDLF curve is the private demand for loanable funds curve
If there is no Ricardo-Barro effect, the figure shows the situation in which the government has a ________ so that the equilibrium real interest rate is ________ and the equilibrium quantity of investment is ________. A) budget deficit; 6 percent; $1.5 trillion B) balanced budget; 6 percent; $1.5 trillion C) budget surplus; 4 percent; $1 trillion D) budget surplus; 6 percent; $1.5 trillion E) budget deficit; 4 percent; $1 trillion
The idea of convergence is that
a. Poor and rich economies will converge on middle-income status. b. Capitalist and Socialist systems will become more alike. c. Poor countries will grow faster than rich ones, but may level off before becoming rich. d. Agricultural technologies will come to resemble industrial technologies. e. None of the above.
The purchase by the Canadian government of a fighter jet produced in the United States is included in U.S
A) consumption spending. B) investment spending. C) government purchases. D) net exports.
Which of the following would cause a rightward shift in the labor demand curve?
a. A rise in the demand for leisure hours. b. A rise in the wage rate. c. A rise in workers' marginal productivity. d. A decline in workers' nonlabor incomes.