With graph on interest rate and planned investment (downward sloping): Planned investment could decrease from $16 million to $12 million if
A) the government reduces government purchases.
B) the Fed buys bonds in the open market.
C) the government reduces net taxes.
D) firms expect their sales to decrease in the future.
Answer: C) the government reduces net taxes.
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Federal Deposit Insurance Corporation (FDIC)
Which of the following is not true about taste for work?
a. Everyone ends up in her or his most preferred job b. The transaction costs of job information and of changing jobs may prevent some desirable matchups c. Workers seek jobs in a way that tends to minimize the disutility of work d. Economists argue that your preferences are stable and you supply more labor to jobs you like e. Economists do not try to explain how work preferences develop
Inelastic demand implies
A) that a one percent increase in price results in a smaller than one percent decrease in quantity demanded. B) that a one percent increase in price results in a larger than one percent decrease in quantity demanded. C) that a one percent cut in price results in a larger than one percent increase in quantity demanded. D) that a one percent decrease or increase in price induces no change in total revenue.
A country's GNP will definitely exceed its GDP if ________ foreign companies produce in the country and ________ of the country's companies produce abroad.
A. many; none B. no; many C. no; none D. many; many