Which of the following would cause a rightward shift in the investment demand curve?
A. An increase in the interest rate.
B. An increase in the rate of capacity utilization.
C. An increase in households' disposable income;
D. An increase in business taxes.
Answer: D
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In the economic way of thinking, speculation can only occur
A) in a capitalist economy. B) in a society where time-travel is possible. C) under uncertainty. D) under perfect information. E) in an underground or illegal market system.
Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:
A. is considered a good predictor of future consumer prices. B. is a lag variable for inflation. C. accounts for inflation before it reaches consumers, adjusting the CPI downward. D. accounts for inflation before it reaches consumers, adjusting the CPI upward.
Which of the following would cause stagflation?
a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts right d. aggregate supply shifts left
The demand for capital by a firm is based on the demand for the product that the capital produces. This relationship is referred to as:
A. Product demand B. Derived demand C. Resource utilization D. Cost minimization