During an economic slump, policies that lower interest rates may not actually boost investment because
A) lower interest rates tend to discourage investment, all other things unchanged.
B) investment is never affected by interest rate changes.
C) of pessimistic expectations by businesses about the future of the economy.
D) taxes may have been decreased during a recessionary period.
Ans: C) of pessimistic expectations by businesses about the future of the economy.
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Which of the following best describes the reason for studying economics?
a. Studying economics helps individuals, businesses, and governments make the best decisions. b. Studying economics helps individuals, businesses and governments understand the financial problems facing the world today. c. Studying economics gives businesses and governments the answers to economic problems. d. Studying economics only helps governments understand the major problems facing the world today.
When a monopolistically competitive firm is in a long-run equilibrium, the values of marginal cost, average total cost, and price are all the same
a. True b. False Indicate whether the statement is true or false
The business cycle is:
A. the term used to describe fluctuations in output around its long-term trend. B. the length of time required by a firm to buy inputs and produce and sell output. C. regular and predictable. D. the pattern of increases and decreases in the money supply.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.