The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment.
B) the direct relationship between the interest rate and the value of planned investment.
C) the indirect relationship between taxes and government spending.
D) the direct relationship between taxes and government spending.
Ans: A) an inverse relationship between the interest rate and the value of planned investment.
You might also like to view...
The above figure shows the apartment rental market in Bigtown. If the Bigtown Housing Authority imposes a rent ceiling of $1,000 per month, the ceiling will
A) help all renters. B) help some renters and hurt other renters. C) help all landlords. D) have no effect at all on the Bigtown rental market.
If the Fed wanted to use all four of its major monetary control tools to decrease the money supply, it would
a. buy bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves. b. sell bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves. c. sell bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves. d. buy bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.
What would most likely happen if Moe’s were to add a seventh worker?
a. Fixed costs would increase.
b. The marginal product of labor would improve.
c. Variable costs would decrease.
d. Bagel output would see little change.
Which of the following is a characteristic of economics?
A) allocation of limited resources in an effort to satisfy potentially unlimited wants B) the focus on how people behave not in their own self-interest C) the way society deals with people's needs D) all of the above