According to classical economists, a decrease in the rate of interest will
A. increase investment.
B. increase consumer saving.
C. increase the inflation rate.
D. increase unemployment.
Answer: A
You might also like to view...
Define price discrimination and explain why a monopolist would price discriminate?
What will be an ideal response?
The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.
What is the crime externality associated with education?
A. A well-educated person earns higher income and commit less crime. B. A well-educated person runs for office and steals from society. C. A well-educated person implements policies that benefit other educated individuals. D. Schools and universities are a rip-off. Every worker in this university is a criminal.
If the MPC is 2/3, the initial impact of an increase of $12 billion in lump-sum taxes will be to cause:
A. a rightward shift in the investment demand schedule. B. an $8 billion downshift in the consumption schedule. C. a $4 billion upshift in the consumption schedule. D. a $12 billion downshift in the consumption schedule.