A rightward shift of the investment demand curve would be caused by a(n):
a. increase in the expected rate of return on investment caused by an increase in business confidence.
b. decrease in the expected rate of return on investment caused by a decrease in business confidence.
c. increase in the rate of interest.
d. decrease in the rate of interest.
a
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According to the simple Keynesian model, when planned expenditure exceeds income
a. prices rise. b. unplanned inventory investment is negative. c. income falls. d. planned expenditure falls. e. both b and d.
The basic difference between macroeconomics and microeconomics is:
a. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. b. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. c. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.