Which of the following is likely to increase the equilibrium real interest rate?
a. greater tax benefits for IRAs
b. technological improvement creating profitable investment opportunities
c. elimination of an investment tax credit for corporations
d. an increased consumption tax
b
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An increase in consumer wealth shifts the consumption function downward
a. True b. False Indicate whether the statement is true or false
Unemployment would cause an economy to
a. produce inside its production possibilities frontier. b. produce on its production possibilities frontier. c. produce outside its production possibilities frontier. d. experience an inward shift of its production possibilities frontier.
Kendra’s country is known for its fruit products, but before the fresh fruit can be made into candies, jams, and juices, a lot is lost due to pests, weather, and damage during shipping. Recently, however, researchers discovered a better way to transport the fruit that cut down on waste by 11 percent. This is an example of ______
a. an increase in productivity b. a rise in the standard of living c. sustained economic growth d. diminishing marginal returns
The _____________of a business's supply curve depends on the nature of its production.
Fill in the blank(s) with the appropriate word(s).