Refer to the information. The data suggest that:
Answer the question below on the basis of the following information for a private closed economy:
A. the interest rate and the equilibrium GDP are directly related.
B. the interest rate and the equilibrium GDP are inversely related.
C. the interest rate and the equilibrium GDP are unrelated.
D. as the interest rate falls, investment also falls.
B. the interest rate and the equilibrium GDP are inversely related.
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If a city government enacts a maximum price on rent,
A) quantity supplied will decrease. B) quantity demanded will increase. C) allocational problems develop. D) All of the above.
From society's point of view, the economic function of profits and losses is to:
A. promote the equal distribution of real assets and wealth. B. achieve full employment and price level stability. C. contribute to a more equal distribution of income. D. reallocate resources from less desired to more desired uses.