A decrease in the interest rate results in
A. a greater opportunity cost of investment and so planned investment spending increases.
B. a smaller opportunity cost of investment and so planned investment spending decreases.
C. a smaller opportunity cost of investment and so planned investment spending increases.
D. a greater opportunity cost of investment and so planned investment spending decreases.
Answer: C
You might also like to view...
OPEC, the Organization of Petroleum Exporting Countries, was formed in Baghdad in 1960. Since its formation, this cartel has suffered from a major problem with respect to the quota (limit) of output it assigns each member nation
What is OPEC's goal and what sort of quota do you think the cartel assigns? How and why do nations cheat on their quota? What happens when a nation cheats on its quota?
The producer price index tracks the prices firms receive for goods and services at all stages of production
Indicate whether the statement is true or false
Which of the following is a difference between M1 and M2? a. M1 includes the most liquid assets, while the assets included in M2 are comparatively less liquid
b. M2 includes the most liquid assets, while the assets included in M1 are comparatively less liquid. c. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money cannot be withdrawn with personal checks. d. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money can be withdrawn with debit cards.
If we include cash benefits and in-kind benefits available to low-income people, the share of the U.S. population in poverty
A) drops dramatically. B) increases somewhat. C) increases dramatically. D) does not change.