Which of the following events could explain an increase in interest rates together with an increase in investment?

a. The government runs a larger deficit.
b. The government institutes an investment tax credit.
c. The government replaces the income tax with a consumption tax.
d. None of the above is correct.

b

Economics

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Under what economic circumstances would the Fed tend to use an expansionary monetary policy and when would it use a contractionary monetary policy? What would happen to the money supply in each of these situations?

What will be an ideal response?

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Based on the table below, at what world price would the country import the good?

Price Q Demanded Q Supplied 2 100 70 4 95 75 6 90 80 8 85 85 10 80 90 12 75 95 A) a price below $8 B) at exactly $8 C) a price above $8 D) It is impossible to say.

Economics