If government spending and the price level increase, then
A) the interest rate decreases, consumption increases, and investment spending increases.
B) the interest rate decreases, consumption declines, and investment spending declines.
C) the interest rate increases, consumption declines, and investment spending declines.
D) the interest rate increases, consumption increases, and investment spending increases.
C
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The increase in interest rates that shook depository institutions began in the
A) 1950s. B) 1960s. C) 1970s. D) 1980s.
When market participants have rational expectations, the deviation of the expected price from the actual future price is
A) zero. B) predictable, provided all relevant information is made use of. C) not predictable. D) predictable under certain circumstances, but not under others.