The destruction of capital
A) benefits an economy, as higher investment must make output go up.
B) necessarily makes output go down.
C) makes real interest rates go down.
D) has no effect on the economy at all.
E) may increase employment enough that output increases.
Correct Answer:
Verified
Q52: The equilibrium effects of a temporary increase
Q53: An increase in government spending
A) increases taxes
Q54: If government spending increases then, given the
Q55: When drawn against the real interest rate,
Q56: An increase in total factor productivity causes
Q58: When drawn against current income, the slope
Q59: The response of output following a natural
Q60: The partial expenditure multiplier
A) is the total
Q61: When future total factor productivity is expected
Q62: An individual stock price
A) determines investment spending.
B)
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