The investment function tells us, at any given interest rate
A) how many funds people will invest in the stock market.
B) how many funds people will earn on their stock market investments.
C) how profitable it will be for firms to expand.
D) how much businesses will spend on adding to the capital stock.
Answer: D) how much businesses will spend on adding to the capital stock.
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If some firms leave a monopolistically competitive market, the
a. remaining firms will charge a lower price to try to capture the released market share b. remaining firms' cost curves will shift upward and to the right c. remaining firms' demand curves will shift to the left d. market demand curve shifts to the right e. remaining firms will produce at a different point on their ATC curves
Above a certain income the marginal social security tax drops to zero
a. True b. False Indicate whether the statement is true or false