If there are strong expectations of future economic growth, then the:
A. economy will move to the right along the existing consumption function.
B. economy will move to the left along the existing consumption function.
C. consumption function will shift downward.
D. investment demand curve will shift upward.
Answer: D
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Why might a country like Brazil have to offer a much higher interest rate on its government bonds than those offered by the Great Britain?
What will be an ideal response?
Refer to Figure 10.1. The minimum feasible price is ________
A) P1 B) P2 C) P3 D) P4 E) none of the above
All the following are examples of variable costs, except
a. Labor costs b. Cost of raw materials c. Accounting fees d. Electricity costs
Entrepreneurial profits are very low because entrepreneurs are generally
a. overly pessimistic and receive psychological rewards for their work. b. overly pessimistic and incur psychological costs from their work. c. overly optimistic and receive psychological rewards for their work. d. overly optimistic and incur psychological costs from their work.