Investment in both physical and human capital tends to enhance economic growth because it generally
What will be an ideal response?
makes it possible for individuals to produce more goods and services per hour worked.
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The percentage return on a loan expressed in terms of goods and services is the
A) real wage rate. B) CPI interest rate. C) real interest rate. D) nominal wage rate. E) nominal interest rate.
As a result of the 2008-2009 financial crisis and the decrease in GDP in many European economies, we would expect
A) an increase in the demand for U.S. exports and a leftward shift in the demand curve for dollars. B) a decrease in the demand for U.S. exports and a leftward shift in the demand curve for dollars. C) a decrease in the demand for U.S. exports and a rightward shift in the demand curve for dollars. D) a decrease in the demand for U.S. imports and a movement up along the demand curve for dollars.
When real income ________, the demand curve for money shifts to the ________ and the interest rate ________, everything else held constant
A) falls; right; rises B) rises; right; rises C) falls; left; rises D) rises; left; rises
If a price ceiling is imposed,
a. the market supply curve shifts to the right b. the market demand curve shifts to the left c. an excess demand for the good results d. the government would be required to buy the excess supply of the good e. the equilibrium price falls below the price level the government wishes to achieve