The planned investment function shows that
A) real gross investment falls as real NNP increases.
B) a negative relationship exists between the level of planned investment and the interest rate.
C) a positive relationship exists between planned consumption and planned investment.
D) at higher levels of planned saving, planned investment increases.
Answer: B) a negative relationship exists between the level of planned investment and the interest rate.
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A rising inflation rate tends to injure the following types of people:
A) retirees and students with savings accounts. B) borrowers and homeowners. C) homeowners with mortgages and students with student loans. D) landowners and borrowers.
Protection is rarely withdrawn from infant industries because such firms are necessary to ensure creation of domestic jobs
a. True b. False Indicate whether the statement is true or false
Taxes on polluting emissions are
a. more efficient than direct controls. b. used by all economic societies. c. less effective than direct regulations. d. easily enforced through the criminal justice system.
Explain how an attempt by the government to lower inflation could cause unemployment to increase in the short-run