In the short run,because financial markets respond immediately to interest rate changes,
A) prices are very volatile.
B) the marginal product of capital always is greater than the real interest rate.
C) the marginal product of capital never deviates to the real interest rate.
D) the marginal product of capital deviates to the real interest rate.
E) investment is less volatile than output.
Correct Answer:
Verified
Q2: Which of the following describes the investment
Q2: In the long run:
A) the federal funds
Q3: The foundation of the IS curve is
Q4: In the long run,if the marginal product
Q4: According to the IS curve, when interest
Q6: In the IS curve,consumption is represented as
Q8: In the short run,if the Federal Reserve
Q8: In the IS curve, consumption, government expenditure,
Q9: The IS curve describes short-run movements in
Q10: Which of the following describes the consumption
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