When the interest rate increases, the cost of financing investments ______ and _____ investment projects will be undertaken.

The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:

a. only discretionary fiscal policy can stimulate the economy b. only automatic stabilizers can stimulate the economy. c. discretionary fiscal policy, once adopted, is built into the structure of the economy. d. automatic stabilizers, once adopted, are built into the structure of the economy. e. only discretionary fiscal policy can be used by the federal government.

Binding price floors cause a surplus in the market

a. True b. False Indicate whether the statement is true or false