Using the supply and demand model, what would happen if foreign investors no longer want to loan money to the United States?
a. Interest rates will decrease, and investment will decrease.
b. Interest rates will increase, and investment will increase.
c. Interest rates will increase, and investment will decrease.
d. Interest rates will decrease, and investment will increase.
c. Interest rates will increase, and investment will decrease.
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According to the IS equation, a change in which of the following will cause a change in output?
A) real interest rate B) autonomous investment C) marginal propensity to consume D) all of the above E) none of the above
If a perfectly competitive firm experiences a permanent increase in demand, profits will become negative in the short run, and in the long run adjustment some firms would exit from the market, causing the supply curve to shift inwards
Indicate whether the statement is true or false
An example of a good that is excludable is:
A. broadcast television. B. an outdoor sculpture visible from the street. C. an aerial fireworks display. D. a television set.
In the depth of the Great Depression, the UR in Canada was about:
What will be an ideal response?