Which of the following will NOT lead to increased capital investment within a country?
A) increased uncertainty about private property rights
B) increased certainty about private property rights
C) increased certainty about being able to reap the gains from investing
D) the decreased possibility of nationalization of private property
A
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In Figure 4-5 above, suppose that real income is YB and the money market is in equilibrium. The interest rate at this point is ________ to support commodity market equilibrium, so that involuntary inventory changes are ________
A) too low, positive B) too low, negative C) just right, zero D) too high, positive E) too high, negative
Assume that you are a policy adviser who believes that money demand is highly interest-sensitive but investment is not. Asked your advice on how to pull the economy out of a recession, you are likely to emphasize
A) contractionary monetary policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) expansionary fiscal policy.