If the interest rate falls, other things being equal, investment spending will
A) fall.
B) rise.
C) either rise, fall, or remain unchanged.
D) not be affected.
B
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Tax expenditures are revenues that
A. are always recouped during tax season. B. only apply to large corporations. C. are needed to get full exemptions. D. are forgone due to preferential tax treatment.
Production indifference curves bow inward toward the graph's origin because of
a. the law of diminishing returns to a single input. b. the law of diminishing marginal returns to scale. c. constant returns to scale. d. minimizing costs in the short run.
Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world. b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender. c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand. d. In terms of spending potential, there is no difference because neither VCU2 nor VCU3 can be spent in the real world.
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. Which of the following combinations would definitely increase the equilibrium interest rate?
A. government spending decreases and the price level increases B. government spending increases and the price level decreases C. government spending increases and the price level increases D. government spending decreases and the price level decreases