When an economy is in a recession,
a. strong demand for investment funds will push interest rates upward.
b. strong demand for resources will push the prices of resources upward.
c. the real interest rate will tend to rise.
d. the unemployment rate will rise above its natural rate.
D
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The data in the table above are the U.S. balance of payments. The data show that
A) the United States has a current account surplus. B) the United States has a capital and financial account surplus. C) The United States loaned $400 billion to the rest of the world. D) Both answers A and B are correct.
The above figure shows the marginal private benefit and marginal social cost of a college education. A $10,000 subsidy to colleges results in a college charging tuition of
A) $0. B) $10,000. C) $20,000. D) $30,000.