The supply-siders argue that investment is

a. primarily a function of current income.
b. highly responsive to changes in after-tax real interest rates.
c. primarily a function of expectations.
d. both a and b.

B

Economics

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An investment opportunity has two possible outcomes, and the value of the investment opportunity is $250. One outcome yields a $100 payoff and has a probability of 0.25. What is the probability of the other outcome?

A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1.0

Economics

Refer to Figure 10.3. What is the competitive price?

A) P1 B) P2 C) P3 D) P4 E) P5

Economics