A business firm will purchase additional capital goods if the real rate of interest in the economy is less than the expected rate of return from the investment.
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Q211: An increase in taxes will shift both
Q212: If the consumption schedule becomes steeper, then
Q213: An increase in business taxes will tend
Q214: The wealth effect will tend to decrease
Q215: If households see the value of their
Q217: The multiplier will be larger, the steeper
Q218: The marginal propensity to consume shows the
Q219: The multiplier measures the change in real
Q220: Saving equals disposable income plus consumption.
Q221: If households do not spend any extra
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