An increase in public works spending is likely to
A. Have no effect on physical capital investment.
B. Increase transportation costs and environmental impact.
C. Decrease physical capital investment.
D. Increase market efficiency.
Answer: D
You might also like to view...
A price-discriminating monopolist will tend to charge a lower price to students if it believes that students: a. have a lower willingness to pay than other demanders. b. have a greater willingness to pay than other demanders. c. have very elastic demand curves
d. have nearly vertical demand curves.
"Frictional unemployment and the natural rate of unemployment depends on the age distribution of the population.". Explain the statement with suitable reasons
In order to maximize its profits, a firm that hires workers in a perfectly competitive labor market will hire workers until the:
A. extra revenue generated from hiring another worker equals the extra cost of hiring that worker. B. the marginal wage rate equals marginal product of the last worker. C. extra revenue generated from hiring another worker equals the extra profit from hiring that worker. D. the marginal product of labor begins to decline.
An increase in the interest rate represents an easing of monetary policy.
Answer the following statement true (T) or false (F)