Suppose the Fed changes the interest rate in an attempt to raise planned investment. But in spite of this, planned investment remains unchanged. The most likely explanation is that
A) we have moved downward along an unchanged rate-of-return line.
B) we have moved upward along an unchanged rate-of-return line.
C) the rate-of-return line has shifted to the left.
D) the rate-of-return line has shifted to the right.
C
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If property rights for air and water exist, then polluters bear the costs of pollution
Indicate whether the statement is true or false
You are told that the price elasticity of demand for widgets is -0.75, the income elasticity of widgets is 2, and the cross-price elasticity of widgets and gadgets is 4. Carefully explain what information you can gather from each of these figures
What will be an ideal response?
Supply of a food item increases by more than the demand for the food item increases. One thing for certain is that
A) the price of the food item rises. B) income elasticity of demand is less than 0. C) the supply curve is price inelastic. D) real income falls as a result. E) none of the above
What statement best describes the relationship between average monthly water bills and precipitation levels in the United States?
a. Water bills are clearly higher where precipitation is lowest b. Water bills are clearly higher where precipitation is highest c. Water bills are mostly unrelated to precipitation levels d. Water bills are linked to precipitation only in Eastern cities e. Water bills are linked to precipitation only in Western cities