In the Keynesian-cross model, a decrease in the interest rate ______ planned investment spending and ______ the equilibrium level of income.
Fill in the blank(s) with the appropriate word(s).
increases; increases
You might also like to view...
The degree of a factor's specificity is inversely related to
A) the mobility of the factor, with more mobile factors having less specificity. B) the amount of time required to redeploy the factor to a different industry. C) the cost of the factor as a proportion of the long-run total cost of production. D) technology differences between two countries, with a less advanced technology resulting in less factor specificity. E) factor quality, with lower quality factors having a lower level of specificity.
Explain how efficiency wages, labor unions, and minimum wage laws affect labor markets
What will be an ideal response?
The Federal Reserve System
A) is the central bank of the United States. B) controls the money supply. C) is the lender of last resort. D) handles the sale of U.S. Treasury securities. E) all of the above
What is the term economists use to designate goods that are desirable but limited in supply?
a. economic goods b. tangible goods c. intangible goods d. precious goods