An increase in the interest rate, other things constant, decreases the amount of investment spending

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary

Economics

Suppose a 4 percent increase in price results in a 2 percent increase in the quantity supplied of a good. Calculate the price elasticity of supply and characterize the product

A) 2; The product is elastic. B) 0.5; The product is inelastic. C) 0.2; The product is inelastic. D) 50%; The product is inelastic.

Economics

Between 1620 and 1710, the price of tobacco in the colonies:

a. rose rapidly. b. remained fairly stable due to monopolistic competition. c. fell from over 20 pence sterling to roughly one pence per pound. d. fell from over 20 pence sterling to roughly 10 pence per pound.

Economics

If firms increase investment, the aggregate expenditures function will shift upward, other things being equal

a. True b. False Indicate whether the statement is true or false

Economics