At higher rates of interest
A. businesses demand more investment because there are more funds available to invest.
B. businesses demand more investment because future profitability is likely to be greater.
C. households save more because they get a greater return on their savings.
D. households save less because it is more expensive to save.
Answer: C
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Technologically efficient production plans are also economically efficient.
Answer the following statement true (T) or false (F)
In a closed economy firms sell goods and services to:
A) households and foreigners. B) households and the government. C) just the government. D) none of the above.
Those who argue that welfare programs are a drag on the economy are of the view that welfare programs funded by taxes:
a. reduce the opportunity cost of labor. b. raise the incidence of poverty and income inequality. c. raise the incentive to work. d. reduce the tax-liability of the tax-payers. e. reduce the demand for labor.
When net exports are negative,
a. exports are greater than investment b. depreciation is greater than net investment c. imports are greater than investment d. exports are greater than imports e. imports are greater than exports