When investors buy more capital goods because the interest rates have fallen, the aggregate demand curve
A) shifts right.
B) shifts left.
C) does not shift.
D) stays the same.
A
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A decline in the price of a bond causes the yield of the bond to
A) rise. B) fall. C) remain unchanged. D) rise if it's a short-term bond, fall if it's a long-term bond.
The optimal level of consumption is achieved when ________
A) consumption in one period is equal to consumption in the next period B) utility in one period is equal to utility in the next period C) all income and wealth has been spent D) the slope of the indifference curve is equal to the slope of the budget line
The position of a demand curve is unaffected by changes in the price of the good
a. True b. False Indicate whether the statement is true or false
When monopolistically competitive firms earn ________ profits, other firms ________ the industry in the long run.
A. positive economic; exit B. negative economic; exit C. normal; exit D. normal; enter