If a nation experiences severe drought and real risk-free interest rate rises, then:
a. Aggregate demand rises, and aggregate supply falls.
b. Aggregate demand rises, but aggregate supply does not change.
c. Aggregate demand and aggregate supply fall.
d. Neither aggregate demand nor aggregate supply change.
e. None of the above.
.C
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When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s).
A. economies of scale B. economies of scope C. diminishing marginal returns D. marginal cost pricing
The United States introduced investment tax credit in 1962 and has continued to offer it till date. This has reduced the volatility of investments in the country
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of investment spending?
a. The Miller Company buys a used van to make deliveries. b. The Rodriguez family buys stock in the Bonanza Corporation. c. Claude invests his holiday bonus in rare comic books. d. The Gregor Bakery Company spends its profits on new ovens.
Economic growth is
A. cannot be illustrated by the shift of a production possibilities curve, while economic development can. B. includes improvements in the quality of life, while economic development considers only GDP per capita. C. defined qualitatively, while economic development is more quantitative in nature. D. defined quantitatively, while economic development is more qualitative in nature.