Which of the following would shift the investment demand curve rightward?
a. A decrease in business taxes.
b. A tax credit for new investment.
c. Firms move from unused capacity to full capacity.
d. All of these.
d
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The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is true?
A) The quantity of town homes demanded decreases to 100,000. B) Black market rents might be as high as $1,300 per month. C) The quantity of town homes supplied increases to 250,000. D) More town homes are rented after the rent ceiling that before. E) The quantity demanded of town homes is less than the quantity supplied.
Consider two similar economies hit by the same temporary negative supply shock. In the economy with the more credible monetary policy, there will be ________
A) smaller increases in both inflation and the real interest rate B) a smaller increase in inflation and larger increase in the real interest rate C) a smaller increase in inflation and larger decrease in output D) a smaller increase in output and larger increase in the real interest rate