According to Classical economists, investment is __________ related to the __________

A) directly; interest rate
B) directly; level of GDP
C) inversely; interest rate
D) inversely; level of GDP


C

Economics

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Refer to Figure 16-12. An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2

Assuming a constant price level, the difference in real GDP between point A and point B will be ________ $200 billion. A) less than B) greater than C) equal to D) There is insufficient information given here to draw a conclusion.

Economics

All of the following are benefits of securitization EXCEPT

A) risk sharing. B) reduced interest rates that borrowers pay on loans. C) increased liquidity. D) fewer adverse selection problems.

Economics

All of the following statements are true about entrepreneurship except:

A. The entrepreneur assembles needed resources. B. The entrepreneur risks her or his own money. C. The entrepreneur reaps the profits or suffers the losses of the enterprise he or she creates. D. The term entrepreneur is synonymous with the term inventor.

Economics

The substitution bias in the CPI arises because the CPI:

A. is based on a fixed basket of goods and services. B. does not adequately allow for improvements in products. C. understates the "true" rate of inflation. D. measures prices at two different times.

Economics