When real planned saving is greater than real planned investment spending
A) real GDP will increase. B) the interest rate will increase.
C) the interest rate will decrease. D) real GDP will decrease.
D
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Which of the following characterize a firm in monopolistic competition in the long run?
i. operating at the minimum efficient scale ii. markups of price over marginal cost iii. zero economic profit A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) only ii
Define comparative advantage and discuss its role in international trade
What will be an ideal response?
The FE line is vertical because the level of output at full employment doesn't depend on the
A. marginal product of labor. B. real interest rate. C. real wage rate. D. level of employment.
Mercantilists perceived trade as a zero sum game
Indicate whether the statement is true or false