If planned investment falls as the interest rate rises, there will be no crowding-out effect.
a. true
b. false
Answer: b. false
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Marginal productivity analysis shows that a drop in the price of the product will cause input use to
a. increase. b. decrease. c. stay the same. d. The information is insufficient to provide an answer.
Which of the following is true of market power? a. It is the ability of a firm to increase market price
b. It represents the ability to enter or exit an industry. c. It is the ability to earn an economic profit in the long run. d. It is the ability of a firm to decrease market price.
If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:
A. $20. B. $30. C. $50. D. $70.
Which statement is false?
A. Price discrimination can be a disguised subsidy to the poor. B. Price discrimination enables the seller to increase her profits. C. Price discrimination is usually against poor people who can't afford to shop around. D. None of these statements are false.