A lower real interest rate ________ investment spending and ________ consumption spending.
A. decreases; increases
B. increases; increases
C. decreases; decreases
D. increases; decreases
Answer: B
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In the above figure, if the natural monopoly is regulated with a marginal cost pricing rule, then the deadweight loss to society is
A) zero. B) ecf. C) gde. D) efcb.
Economists call pensions “defined benefits” plans, because
a. pension distributions rise with the rise in the CPI b. pensions have traditionally been set as a fixed nominal dollar amount per year at retirement c. pensions are always adjusted yearly for inflation d. pensions are similar to borrowers who benefit from rising inflation
When there is an excess quantity of a product supplied, there will be
A. incentives for consumers to leave the market. B. upward pressure on the price of labor. C. a tendency for price of the product to fall. D. a tendency for price of the product to increase.
Quantity supplied is determined by how much producers are willing and able to produce.
Answer the following statement true (T) or false (F)