Which of the following could be a direct cause of investment spending increasing?
A. Expected future income decreases.
B. Interest rates increase.
C. A firms costs unexpectedly drop making their profit margin higher.
D. The wealth of consumers increasing causing them to radically increase their purchases.
Answer: C
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Suppose that the short-run price elasticity of demand for electricity is 0.03, and the long-run price elasticity of demand is 1.2. One would classify the short-run elasticity as being ________ and the long-run elasticity as being ________.
A. inelastic; unit elastic. B. elastic; inelastic. C. elastic; elastic. D. inelastic; elastic.
In November 2008, the leaders of the ________ met in an emergency meeting in Washington to coordinate their responses in terms of both macroeconomic and financial policies
A) G20 B) G7 C) OECD countries D) G8
Returns to scale refers to the change in output when
A) all inputs increase proportionately. B) labor increases holding all other inputs fixed. C) capital equipment is doubled. D) specialization improves.
Which among the following countries had the highest GDP per person in 2011?
A. Mexico B. India C. Russia D. China