Which is a plausible cause of the movement in Figure 13.1 from point 1 to point 2?
A) a change in expectations that causes a decline in the real interest rate for investments
B) a decrease in expected inflation
C) the economy's self-correcting mechanism
D) the central bank achieves a negative value for the nominal interest rate
E) none of the above
A
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A market system tends to create inequality.
Answer the following statement true (T) or false (F)
When net capital flows are positive,
A) net foreign investment is negative. B) capital inflows are greater than capital outflows. C) capital outflows are greater than capital inflows. D) A and B are both correct.
Three of the four events described below might reasonably be expected to shift the demand curve for Tacos to a new position. One would not shift the demand curve. The single exception is:
a. a change in people's tastes with respect to Tacos. b. an increase in the money income of beef consumers. c. a widespread advertising campaign undertaken by the producers of a product competitive with Tacos. d. a fall in the price of Tacos.
If a pair-wise majority vote was held and the voters' preferences are shown in the table, assuming public zoo and transportation was the first pair to be voted on, which voter will be happiest with the outcome?
A. Bob
B. Carlo
C. Abby
D. Abby and Bob will be equally happy.