Based on the neoclassical theory of investment, which aspect of a booming economy helps to explain the procyclicality of investment?
A) Tax revenues are likely to be rising.
B) The real interest rate is likely to be rising.
C) Capital goods are becoming more expensive.
D) Financing constraints are likely to be relaxed for many businesses.
D
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If the demand and supply both increase equally, then the equilibrium price ________ and the equilibrium quantity ________
A) increases; increases B) increases; does not change C) does not change; increases D) increases; decreases E) decreases; does not change
For which of the following is demand likely to be most price-elastic?
a. steak b. beef (including steak, ribs, hamburger, etc.) c. meat (including beef, pork, chicken, lamb, etc.) d. protein foods (including meat, cheese, beans, eggs, fish, etc.) e. none of the above (they will all have the same elasticity)