An increase in the real interest rate will
What will be an ideal response?
most likely lower consumers purchases of durable goods
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To dig a trench, each worker needs a shovel. Workers can only use one shovel at a time. Workers without shovels do nothing, and shovels cannot operate on their own
What kind of production technology is this? Graphically (with isocost and isoquant lines) determine the optimal number of shovels and workers used by a firm to dig two trenches when w = r = 10. What will be the (long-run) total cost of the two trenches? What will happen if the rental rate drops to $5 while the wage remains at $10? Add the relevant lines to your graph and compute the new optimal quantity of inputs and total cost.
In an attempt to solve the problem of the overvalued dollar in the early 1970's, the United States
a. revalued the dollar, which made foreign exchange cheaper. b. decreased the price of gold in terms of the dollar. c. devalued the dollar, which made foreign exchange cheaper. d. devalued the dollar, which made foreign exchange more expensive.
When the price of a product increases, there is Question 27 options:
A. a downward movement along the demand curve. B. a rightward shift of the demand curve. C. an upward movement along the demand curve. D. a leftward shift of the demand curve.
Tom is a U.S. citizen. He took up a job and moved to the U.K. His income will lead to a(n) ________
A) decrease in the GDP of U.K. B) increase in the GNP of U.K. C) increase in the GDP of U.S. D) increase in the GNP of U.S.