Lowering the interest rate will
A) decrease spending on consumer durables.
B) increase investment projects by firms.
C) decrease spending on new homes.
D) decrease the value of the dollar and lower net exports.
Answer: B
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The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a 25% real interest rate on their savings. Assume that all interest is paid out as income in the following year. In the year 2010, both families began to save. The Hatfields saved 8% of their income each year; the McCoys saved 10%. In 2010, the Hatfields consumed ________ more than the McCoys; in 2011, the Hatfields consumed ________ than the McCoys.
A. $2,000; about $250 more B. $1,000; about $800 more C. $2,000; about $250 less D. $1,000; about $800 less
___________ markets like Hawaii and Florida tend to have more stable prices, while ___________-oriented destinations like Washington, D.C., and Chicago have more price volatility
Fill in the blank(s) with the appropriate word(s).
If the growth rate for GDP was 9 percent and GDP in year 1 was 100, then GDP in year 2 would be:
A. 90. B. 109. C. 190. D. 199.
The main goal of macroeconomic research is to
A. predict how the macroeconomy will perform in the future. B. make general statements about how the economy works. C. develop new data that can be used to understand better the operation of the economy. D. analyze current macroeconomic data.