Interest rates and planned investment spending:
A) have a positive relationship.
B) exhibit a negative relationship.
C) have no relationship,since planned investment is fixed.
D) have no relationship if the firm has retained earnings.
Correct Answer:
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Q115: A decrease in consumer spending is likely
Q116: Suppose the aggregate consumption function is given
Q117: The slope of the consumption function equals:
A)
Q118: Planned investment spending is:
A) investment that firms
Q119: When consumers receive more disposable income,their spending:
A)
Q121: The multiplier process assumes that:
A) aggregate prices
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Q123: If the marginal propensity to consume equals
Q124: In the income-expenditure model,inventories are:
A) fixed and
Q125: Suppose the level of planned aggregate expenditure
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