What type of relationship does the real interest rate have with respect to Investment spending?
A. No relationship
B. constant relationship
C. positive relationship
D. negative relationship
Answer: D
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Explain how a "conservative" and a "liberal" might differ in the types of policies they advocate to counteract a recessionary gap
Why is antitrust legislation necessary?
A) Monopolies tend to misallocate resources. B) All monopolies are unlawful in the United States. C) Monopolies tend to allocate resources in a socially optimal manner. D) Monopolies will always make a profit in the long run.
Suppose the U.S. GDP growth rate is faster relative to other countries' GDP growth rates. This will
A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along a stationary aggregate demand curve. D) move the economy down along a stationary aggregate demand curve.
The government finances Social Security through
A) excise taxes. B) payroll taxes. C) the sale of goods and services. D) state taxes.