The determinants of investment include the
a. level of technology, the interest rate, expectations of future economic growth, and the level of income
b. level of technology, the interest rate, expectations of future economic growth, and the capacity utilization rate
c. level of technology, the interest rate, the capacity utilization rate, and the level of income
d. level of technology, the capacity utilization rate, expectations of future economic growth, and the level of income
e. capacity utilization rate, expectations of future economic growth, the interest rate, and the level of income
E
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Which of the following is not an example of an incomes policy?
a. Presidential jawboning. b. Unemployment insurance. c. Wage and price guidelines. d. Wage and price controls.
An increase in the federal funds rate could be caused by:
A. higher than expected bank reserves. B. higher than expected withdrawals. C. lower than expected loan demand. D. higher than expected bank deposits.
If a nation has no absolute advantage, then it
A) cannot gain from trade. B) still gains from trade. C) can only gain from trade if it raises its productivity levels. D) can only gain from trade if it produces outside its production possibilities curve.
If households and businesses correctly anticipate the inflation rate, the unemployment rate
A. will be the cyclical rate of unemployment. B. will be inversely related to the expected inflation rate. C. will be the natural rate of unemployment. D. will be positively related to the expected inflation rate.