All other things constant, when the interest rate increases:
a. the demand for investment curve shifts to the right
b. the demand for investment curve shifts to the left.
c. there is a movement downward along the demand for investment curve.
d. there is a movement upward along the demand for investment curve.
e. GDP increases.
d
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Assuming that money demand is completely interest insensitive, the
a. LM schedule will be horizontal. b. LM schedule will be vertical. c. IS schedule is vertical. d. IS schedule is horizontal.
Refer to the above figure. Which of the above panels represents complete income equality?
A) Panel A B) Panel B C) Panel C D) Panel D
The Cost-Benefit Principle is:
A. not an economic principle. B. neither a positive nor a normative economic principle. C. a normative economic principle. D. a positive economic principle.
If the real GDP in Haiti grew at an annual rate of 2 percent and the country's population grew at an annual rate of 4 percent, how long will it take for GDP per capita to double?
A. Approximately 18 years. B. Approximately 36 years. C. It will never double because population is increasing more rapidly than real GDP. D. Approximately 72 years.