According to Keynes, in deciding whether to increase or decrease planned investment, businesses will be guided primarily by
a. the rate of interest.
b. past profits.
c. the size of government spending.
d. expected profits.
d. expected profits.
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Which of the following factors could lead to an upward movement along the demand curve as indicated by the arrow?
i. an increase in the U.S. interest rate ii. a decrease in the U.S. interest rate iii. an increase in the expected future U.S. exchange rate. A) i only B) ii only C) i and iii D) ii and iii E) None of the factors could lead to the upward movement illustrated by the arrow. The figure above shows demand curves for dollars in the foreign exchange market.
In general equilibrium
A) supply equals demand for all goods in all periods. B) supply equals demand for most goods in all periods. C) supply equals demand in present value, but not in all periods. D) prices are exogenous.
A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle, is termed: a. budget finance
b. functional finance. c. crowding out. d. crowding in. e. deficit finance.
A decrease in the number of producers will shift supply to the left
a. True b. False Indicate whether the statement is true or false