Higher interest rates
A) reduce total planned real expenditures because they increase the cost of borrowing funds.
B) reduce total planned real expenditures because they reduce the income of bankers and other creditors.
C) increase total planned real expenditures because they increase the incomes of all people in the economy.
D) increase total planned real expenditures because they lower the costs of building new plants and equipment.
A
You might also like to view...
If the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded
A) a full-employment equilibrium occurs. B) actual GDP equals potential GDP. C) the supply curve of labor is vertical. D) Both answers A and B are correct.
Explain the circumstances under which a firm will produce output while incurring a short-run loss, and the circumstances under which it will shut down while incurring a short-run loss
Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?
a. 1) Karena and 2) Nathan, even if Nathan has not looked for work during the previous four weeks b. 1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks c. 1) not Karena but 2) Nathan, even if Nathan has not looked for work during the previous four weeks d. 1) not Karena but 2) Nathan, if Nathan has looked for work during the previous four weeks
What is the difference between holding a monopoly and monopolization? Which is illegal? Explain
What will be an ideal response?