Monetary and price instability will
a. make it easier for both individuals and businesses to plan wisely for the future.
b. generate uncertainty, and encourage investors and businesses to move their activities to countries with a more stable monetary environment.
c. encourage businesses to invest and expand their future output.
d. encourage domestic citizens to increase their rate of saving.
B
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As the capital-labor ratio increases, investment per worker
A) increases at an increasing rate. B) decreases at a constant rate. C) increases at a decreasing rate. D) decreases at an increasing rate.
The choice between increasing government spending and cutting taxes often is related to
A) what an economist believes the value of both the tax multiplier and the government spending multiplier are. B) what an economist believes the right size and scope of government might be. C) whether an economist believes that government spending leads to complete crowding out. D) a and b E) all of the above