A temporary decrease in government purchases causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium.

Investments are actions that incur costs in the future but provide expected benefits today

Indicate whether the statement is true or false

The tradeoff between current consumption and the production of capital goods also reflects a tradeoff between

A) the future production of capital goods and future consumption of goods. B) economic growth and technological change. C) satisfying today the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.