If desired spending exceeds output, then firms:
A) accumulate their inventories and cut production.
B) deplete their inventories and cut production.
C) deplete their inventories and increase production.
D) accumulate their inventories and increase production.
C
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Changes in interest rates, all else held constant, cause a shift in ________.
A. the investment demand curve, but not the aggregate demand curve B. the aggregate demand curve, but not the investment demand curve C. the investment demand curve and the aggregate demand curve D. either the investment demand curve or the aggregate demand curve
A bond is selling for $1000 and it pays $150 in interest a year. If the interest rate changes to 20 percent, then
A) the price of the bond falls to $750. B) the interest payment falls to $75. C) the interest payment rises to $200. D) the price of the bond rises to $1500.
The supply of a renewable resource is perfectly elastic
Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. Both U.S. Congress and the Executive Branch share responsibility for the formulation of U.S. trade policy.