Which would increase investment demand?
a. An increase in business optimism
b. A rise in the real interest rate
c. An increase in production costs
d. An increase in business taxes
a. An increase in business optimism
Economics
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If aggregate expenditures (AE) are less than aggregate output (real GDP), then firms will:
a. have unplanned inventory accumulation. b. earn above-average profits. c. expand production and hire more workers. d. be raising their prices.
Economics
Different measurements of elasticity include:
A. income elasticity of demand, income elasticity of supply. B. price elasticity of demand, price elasticity of supply. C. cross-price elasticity of demand, income elasticity of supply. D. preference elasticity of demand, cross-price elasticity of supply.
Economics