A decrease (shift to the left) in aggregate supply can lead to
a. demand-pull deflation
b. demand-pull inflation
c. prosperity
d. cost-push inflation
e. cost-push deflation
D
Economics
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If the Fed lowers the interest rate, then
A) only consumption expenditure decreases. B) only investment decreases. C) both consumption expenditure and investment decrease. D) net exports will increase. E) consumption expenditure decreases and investment increases.
Economics
A competitive capital market is important to society because it directs resources toward projects that
a. can be completed quickly. b. create wealth. c. have an outcome that is known with certainty. d. reduce the value of the resources employed.
Economics