Lower interest rates motivate:
A) firms to invest less in new factories and working capital.
B) firms to invest more in new factories and working capital.
C) individuals to spend less on consumption goods.
D) individuals to spend less on capital goods.
Correct Answer:
Verified
Q35: Higher interest rates caused by an increase
Q36: When prices rise, the interest rate:
A) tends
Q37: Government spending:
A) tends to increase with increases
Q38: The wealth effect says that if there
Q39: The wealth effect:
A) explains the downward-sloping aggregate
Q41: The aggregate demand curve slopes downward in
Q42: The aggregate demand curve sloping downward can
Q43: As the U.S. price level decreases, expenditures
Q44: We define net exports to be:
A) exports
Q45: As the U.S. price level decreases, expenditures
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