A rightward shift of the investment demand curve would be caused by a(n):
A. increase in the expected rate of return on investment caused by an increase in business confidence.
B. decrease in the expected rate of return on investment caused by a decrease in business confidence.
C. increase in the rate of interest.
D. decrease in the rate of interest.
Answer: A
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Indicate whether the statement is true or false
On the graph above, suppose the economy is at point 1. Which sequence of points best illustrates the short-run and then long-run impacts of a permanent tax reduction? [Assume that potential output remains constant at .]
A) 2, 4, 1 B) 7, 2, 5 C) 2, 7, 6 D) 7, 8, 1
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a. predict absolute convergence. b. predict conditional convergence. c. do not predict convergence. d. predict convergence among rich countries but not poor countries.
If the price of apples rises from $.50 to $1.50 and quantity demanded falls from 1,000 to 900, we can conclude that the price elasticity for apples is
a. -20. b. inelastic. c. elastic. d. unitary.