The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively
a. insensitive to interest rates and to GDP.
b. insensitive to interest rates but sensitive to GDP.
c. sensitive to interest rates and to GDP.
d. sensitive to interest rates and insensitive to GDP.
d
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Suppose notebooks are produced by a competitive constant-cost industry. Which of the following must cause Nanna's Notebooks to exit the industry in the long run?
a. Nanna's is notified of a rent increase, but her competitors' rents are unchanged. b. A fire destroys half of Nanna's inventory. c. A photographer wins a $10,000 judgment from a lawsuit charging that Nanna's used his photos on notebook covers without permission. d. The price of cardboard used in notebook production rises.
Which of the following is included in Germany's GDP?
i. BMWs produced in a German-owned factory in South Carolina ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. china produced by the English-owned Wedgewood Company at a factory in Berlin, Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above answers is correct.
In monopolistic competition, product improvement and development
A) are valued by the consumer at an amount equal to the costs the producers have incurred. B) yields a marginal benefit to the producer equal to price of the good. C) is less than its efficient amount. D) None of the above answers are correct.
To which of the problems in the construction of the CPI is the invention of pocket-sized computers most relevant?
a. substitution bias b. introduction of new goods c. unmeasured quality change d. income bias