In the short-run macro model, what is the relationship between income and investment spending?
a. It is positive and stable.
b. It is positive but unstable.
c. It is negative and stable.
d. It is negative but unstable.
e. There is no relationship between the two variables.
E
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Which of the following is NOT an example of ways in which microeconomic analysis can help Toyota Motor Corporation its in corporate decision making?
A) Forecasting demand for new automobiles B) Determining how many automobiles to produce in order to maximize profits C) Predicting how competitors will react to the firm's pricing strategy D) Forecasting the effect of Toyota's hiring patterns on the U.S. unemployment rate E) Forecasting the effect of an oil price increase on demand for hybrid autos
One role of the interest rate is to
A) allocate capital to its most efficient uses. B) redistribute income from the wealthy to the poor. C) reduce the rate of inflation by encouraging government borrowing. D) discourage saving and encourage current consumption.