To boost economic growth the government most likely to:
A. increase intereste rates
B. increase taxation rates
C. provide incentives to invest
D. provide incentives to save
Ans: C. provide incentives to invest
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Developing countries with large informal sectors tend to have firms that invest less in capital equipment
Indicate whether the statement is true or false
In many rural areas, electric generation and distribution utilities were initially set up as cooperatives in which the electricity customers were member-owners. Like most cooperatives, the objective of these firms was to:
A) maximize profits for the member-owners. B) maximize total revenue that could be redistributed to the member-owners. C) operate at zero profit in order to provide low electricity prices for the member-owners. D) minimize the costs of production.
The U.S. government uses export subsidies extensively to stimulate exports
a. True b. False Indicate whether the statement is true or false
If the investment demand curve is very steep, then Fed monetary policy will have a relatively small impact on planned investment, and thus on aggregate demand
Indicate whether the statement is true or false