Because business firms often finance new investments with borrowed money, a key determinant of investment spending is

a. tax rates.
b. the price level.
c. the rate of inflation.
d. the real interest rate.


d

Economics

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In the above figure, if a single-price monopolist charges the profit-maximizing price, the triangle dce represents

A) consumer surplus. B) producer surplus. C) deadweight loss. D) marginal revenue.

Economics

During the course of an economic contraction, it is likely that a country would experience

A) a currency depreciation as explained by the absorption approach. B) a currency appreciation as explained by the absorption approach. C) a currency depreciation as explained by the elasticities approach. D) a currency appreciation as explained by the elasticities approach.

Economics

Price elasticity of demand measures the responsiveness of quantity demanded in a market to a change in price

a. True b. False Indicate whether the statement is true or false

Economics

Even though prices may change frequently, they can be expected to gravitate toward equilibrium

a. True b. False Indicate whether the statement is true or false

Economics