When interest rates in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________
A) more; the production function to shift upward
B) less; the production function to shift downward
C) more; a movement up along a given production function
D) more; a movement down along a given production function
A
You might also like to view...
The national debt is the:
a. difference between a nation's exports and imports of goods and services. b. sum of the personal debt of all citizens in the United States. c. indebtedness of the federal government in the form of outstanding interest-earning government security. d. sum of the net personal debts of Americans to foreigners.
For suppliers, the ________________ elasticity is greater than the _____________ elasticity because they have ______________
a. short run supply; long run supply; no time to adjust b. short run price; long run supply; time to adjust c. long run supply; short run price; no time to adjust d. short run supply; long run price; time to adjust e. long run supply; short run supply; time to adjust