Elasticity of investment measures the responsiveness of
A) interest rates to changes in investment.
B) investment to changes in government spending.
C) investment to changes in the interest rate.
D) investment to changes in consumption.
C
You might also like to view...
A market achieves allocative efficiency when: a. total surplus is at its maximum
b. consumer surplus is at its minimum. c. demand is perfectly elastic. d. market concentration is maximized.
Government purchases include spending by federal, state, and local governments on:
A. consumer durables, nondurables, and services. B. stocks, bonds, and other financial instruments. C. final goods and services. D. capital goods, residential housing, and changes in inventories.
Average variable costs are minimized when:
A. marginal costs begin to increase. B. marginal costs begin to decrease. C. marginal cost is greater than average total cost. D. marginal cost equals average variable cost.
If the Fed has announced that it plans on increasing the interest rate it will
A. engage in contractionary open market operations, thereby increasing the money supply. B. engage in expansionary open market operations, thereby increasing the money supply. C. engage in expansionary open market operations, thereby decreasing the money supply. D. engage in contractionary open market operations, thereby decreasing the money supply.