A higher real interest rate ________ investment spending and ________ consumption spending.
A. increases; decreases
B. decreases; decreases
C. decreases; increases
D. increases; increases
Answer: B
You might also like to view...
When conducting cost-benefit analysis, it is important to ignore previously incurred costs and previously received benefits
Indicate whether the statement is true or false
For an economy in equilibrium, the Keynesian model suggests that the plot of aggregate expenditure against RGDP: a. is a vertical line
b. has slope lesser than 1. c. has slope equal to 1. d. is a horizontal line.
If perfect competitors are losing money in the short run, then in the long run there will be _____ firms in the industry and market price will ______.
A. fewer; rise B. fewer; fall C. more; rise D. more; fall
The sale of a used automobile would not be included in the GDP for the current year because it is a:
A. nonmarket transaction. B. public transfer payment. C. noninvestment transaction. D. nonproduction transaction.