Other things constant, a rise in which of the following would tend to increase the nominal interest rate?
A) The rate of time preference
B) The risk premium
C) The expected rate of inflation
D) Any of the above.
D
Economics
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When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 3/4, a $10 billion increase in investment will cause the equilibrium income to rise by
a. $5 billion. b. $10 billion. c. $20 billion. d. $40 billion.
Economics
To determine whether a particular good is a normal good, a luxury good, or an inferior good, you would want to observe what happens to demand for the good when __________ changes.
A. supply B. the price of raw materials C. price D. income
Economics