If the Fed changes the interest rate, there will be
a. a movement along the aggregate expenditure line followed by a shift in the line
b. no movement along the aggregate expenditure line because the effect is on investment
c. a shift in the aggregate supply curve
d. an increase in the money supply
e. a shift in the aggregate expenditure line
E
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Investment includes spending on
A) capital goods, buildings, and changes in business savings. B) capital goods, buildings, and changes in business inventories. C) capital goods, buildings, and consumer durable goods. D) capital goods, consumer durable goods, and changes in business inventories.
A free rider is one who enjoys the benefits of a public good without paying for it.
Answer the following statement true (T) or false (F)
Briefly explain why a rise in national production and income per capita might improve some environmental problems such as air pollution, water pollution, and sanitation, and potentially worsen others.
What will be an ideal response?
An important characteristic of private goods is
A) the nonexclusion principle. B) the principle of rival consumption. C) the principle of joint consumption. D) the principle of conspicuous consumption.