When an economy is experiencing an economic boom and operating beyond its long-run capacity,

a. strong demand for investment funds will push interest rates upward.
b. weak demand for resources will push the prices of resources downward.
c. weak demand for investment funds will cause the real interest rate to decline.
d. the unemployment rate will be greater than its natural rate.

A

Economics

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Mrs. Lovejoy decides to invest in companies which she believes are producing its goods based on the preferences of consumers. Mrs. Lovejoy is investing in companies that are

A) always going to be profitable. B) allocatively efficient. C) productively efficient. D) both productively and allocatively efficient.

Economics

Which will be TRUE for a monopolistic competitor experiencing short-run losses?

A) P > ATC B) P = ATC C) P < ATC D) P < MC

Economics