Which of the following factors would decrease in the quantity of investment demanded?
A. A decrease in business taxes
B. An increase in the rate of technological change
C. An increase in the interest rate
D. A decrease in the stock of capital goods on hand
Answer: C
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Assume wages paid by a firm to its workers decrease. What will be the reaction of consumers as the market moves to its new equilibrium?
A) Quantity demanded will decrease. B) Quantity demanded will increase. C) The demand curve will shift to the left. D) There will be no reaction by consumers, since input prices determine supply, not demand.
When the interest rate is above the equilibrium interest rate, there is an excess ________ money and the interest rate will ________
A) demand for; rise B) demand for; fall C) supply of; fall D) supply of; rise
A surplus will result whenever the:
a. government imposes a price floor below the equilibrium price. b. government imposes a price ceiling below the equilibrium price. c. government imposes a price floor above the equilibrium price. d. government imposes a price ceiling above the equilibrium price.
Supply-side policy is based on the assumption that people's economic behavior is not affected by taxes
a. True b. False Indicate whether the statement is true or false