If the interest rate increases, then the:
A. economy will move to a new point along the existing consumption function.
B. consumption function will shift up.
C. consumption function will shift down.
D. investment demand curve will shift up.
Answer: C
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MacDougall showed in his tests that
A) relatively higher U.S. labor productivity was associated with relatively higher U.K. export ratios. B) relatively higher U.K. labor productivity was associated with relatively higher U.K. export ratios. C) labor productivity ratios and export ratios were not associated with each other. D) None of the above.
If a country allows its currency's value to be determined in the market for foreign exchange, it has a:
A. fixed exchange rate. B. floating exchange rate. C. prime exchange rate. D. key exchange rate.
When a country has a comparative advantage in producing a certain good,
a. the country should import that good. b. the country should produce just enough of that good for its own consumption. c. the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good. d. None of the above is correct.
Labor productivity is
A. the average amount produced per worker. B. the average amount produced times the number of people in the labor force. C. the average amount produced times the number of workers. D. the rate of change in the total amount produced per worker.