If government spending and the price level increase, then
A) the interest rate increases, consumption declines, and investment spending declines.
B) the interest rate decreases, consumption declines, and investment spending declines.
C) the interest rate increases, consumption increases, and investment spending increases.
D) the interest rate decreases, consumption increases, and investment spending increases.
Answer: A
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The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the:
A. the less an additional unit of capital adds to production. B. less is produced. C. less production is wasted. D. the more an additional unit of capital adds to production.
Because warranties are potentially ________, low-quality goods are ________ to have warranties
A) very expensive; less likely B) inexpensive; less likely C) very expensive; more likely D) inexpensive; more likely
Which of these forms of financing requires the smallest minimum size of the borrower?
A) short-term commercial bank loans B) commercial paper C) mezzanine funds D) venture capital funds
In the typical AC curve, the downward-sloping part is attributable to
a. spreading fixed costs over larger outputs and increasing returns to the variable inputs. b. declining administrative costs as output increases. c. falling fixed costs. d. rising total product.