Which of the following will increase investment spending?
A. more optimistic business expectations
B. an increase in interest rates
C. an increase in business taxes
D. a decrease in capacity utilization
Answer: A
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Because many business situations are repeated games, firms may be able to avoid the prisoner's dilemma and implicitly collude to keep prices high
Indicate whether the statement is true or false
The _____ aggregate supply curve assumed by classical economists means that the equilibrium level of _____ is determined only by the aggregate supply curve
a. vertical; output b. horizontal; price c. upward-sloping; price d. horizontal; output e. downward-sloping; price
The percentage change in the quantity of a good demanded is calculated by:
a. multiplying the absolute change in quantity demanded and the average quantity demanded. b. dividing the absolute change in quantity demanded by the average quantity demanded. c. multiplying the absolute change in quantity demanded and the total quantity demanded. d. dividing the absolute change in quantity demanded by the total quantity demanded.
Holding money as a store of value instead of other assets is
A. the precautionary demand for money. B. the transactions demand for money. C. the asset demand for money. D. the capital demand for money.