If consumers reduced their spending, what would happen to the interest rate and investment?
The interest rate would fall so investment would rise.
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Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond A is approximately
A. 2.9 percent. B. 0.03 percent. C. 2.5 percent. D. 0.02 percent.
In the above table, what is the marginal revenue product of the 1st worker?
A) $92 B) $70 C) $40 D) $8
An expansionary fiscal policy will be effective only if the central bank of a country simultaneously prevents the market interest rate from rising
a. True b. False Indicate whether the statement is true or false
The impact of fiscal stimulus on aggregate demand includes both new government spending and all subsequent induced increases in consumer spending triggered by the initial government outlays.
Answer the following statement true (T) or false (F)