Along an IS curve as income levels __________, saving is smaller, so the interest rate must be __________ to reduce the level of investment so it will be equal to saving
A) increase; higher
B) increase; lower
C) decrease; higher
D) decrease; lower
C
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The participation rate is
A) countercyclical B) more variable than GDP C) procyclical D) a leading variable
U.S. demand for tertiary labor increases when
(a) the wage rate rises. (b) urbanization proceeds. (c) demand for goods and services decreases. (d) price of output declines.
If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include:
a. the entry of new firms. b. temporarily higher profits. c. both a and b. d. neither a nor b.
The central bank of the United States is:
A. the Bank of the United States. B. the Treasury. C. Old Lady of Threadneedle Street. D. the Fed.