If interest rates go down, which of the following would most likely occur:
A. Banks will pay more to borrow money.
B. The stock market will go up.
C. Consumers will spend less.
D. U.S. exports will decrease.
B. The stock market will go up.
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Long-run macroeconomic equilibrium is achieved when the money wage rate has adjusted so that employment is such that real GDP equals potential GDP
Indicate whether the statement is true or false
Income tax payments
a. fall during periods of prosperity, thus reducing inflationary pressures b. fall during periods of prosperity, thus increasing inflationary pressures c. rise during periods of prosperity, thus reducing inflationary pressures d. fall during recessions, thus increasing the problem of unemployment e. rise during recessions, thus increasing the problem of unemployment
The smallest size plant size at which the long-run average cost curve is at its minimum is called the
A. shut down point. B. minimum efficient scale. C. envelope. D. profit-maximizing scale of production.
If the cross elasticity of demand between Jeep Cherokees and Chevy Lumina Vans is 1.55, then the two vehicles are not substitutes in the eyes of car buyers
Indicate whether the statement is true or false