Which of the following will NOT lead to a shift in the investment function?
A. A firm is more certain about its future profitability.
B. The cost of borrowing funds has decreased.
C. The government just lowered business taxes.
D. A new discovery leads to a technological advancement.
Answer: B
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Refer to Figure 13-1. Ceteris paribus, an increase in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Which of the following is a tool of commercial policy?
a. Corporate income tax b. Payroll tax c. Excise duty d. Tariff e. Octroi duty
An example of a direct regressive tax would be the _____ tax.
Fill in the blank(s) with the appropriate word(s).
An inflation rate below the target rate will result in:
A. a movement down along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve. B. a movement up along the monetary policy reaction curve and a movement down the dynamic aggregate demand curve. C. a movement up along the monetary policy reaction curve and a leftward shift of the dynamic aggregate demand curve. D. a movement up along the monetary policy reaction curve and a rightward shift of the dynamic aggregate demand curve.