If interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to happen?
a) Savings is greater than investment demand.
b) Investment demand is greater than savings.
c) Savings and investment are both rising rapidly.
d) Savings and investment are both falling rapidly.
Ans: b) Investment demand is greater than savings.
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Expansionary fiscal policy falls short of its goal. Some economists claim it is due to indirect crowding out. What evidence would be consistent with this claim?
A) The interest rate increased. B) The price level decreased. C) Saving decreased. D) An increase in consumer spending occurred.
According to economists, human activity is unresponsive to changes in costs
a. True b. False Indicate whether the statement is true or false
A change in the quantity demanded of labor is represented by a shift in the labor demand curve
a. True b. False Indicate whether the statement is true or false
The relationship between quantity supplied and price is usually
A. a direct relationship. B. an inverse relationship. C. a negative relationship. D. impossible to determine.