Higher interest rates and, therefore, a decrease in investment spending is most likely to be caused by which policy mix?
a. deficit reduction and expansionary monetary policy
b. larger deficits and contractionary monetary policy
c. larger deficits and expansionary monetary policy
d. deficit reduction and contractionary monetary policy
b
You might also like to view...
Which of the following is NOT a characteristic of a perfectly competitive market?
A. Sellers can easily buy and sell the productive resources needed to enter the market. B. Buyers and sellers are well-informed. C. Each firm in the market sells a somewhat different variant of the good. D. There are many sellers, each of which sells only a small fraction of the total quantity exchanged.
Refer to the above figure. If the farmer is producing 4,000 bushels of beans and 38,000 bushels of wheat, then we know the farmer
A) is using resources efficiently. B) is producing too much wheat. C) is inefficient because point a is the most efficient point on the curve. D) must be using more resources than were assumed available in constructing the graph.
In a closed economy, national savings is:
A. the sum of the savings of individuals and corporations plus the savings of the government. B. the sum of public savings plus private savings. C. equal to national investment. D. All of these are true.
Which statement is most likely correct about quantity supplied?
a. When economists refer to quantity supplied, they are referring to a certain point on the supply curve or a certain quantity on the supply schedule. b. When economists refer to quantity supplied, they are referring to the relationship between a range of prices and the quantities supplied at those prices. c. Quantity supplied does not change with price. d. Quantity supplied will increase for one good when the quantity of the other good is increased.