Starting from equilibrium and using the ISLM framework, an increase in investment leads to
A) lower interest rates and higher income.
B) higher interest rates and higher income.
C) lower interest rates and lower income.
D) higher interest rates and lower income.
B
Economics
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Economic analysis and policy are made more difficult by
a. having so much data to work with. b. inadequate and imperfect information. c. an incomplete consensus on the basic goals of social policy. d. the lack of public interest and opinion on economic questions. e. the major economic problems society faces.
Economics
If an excess quantity of labor demanded exists in a free market, there is a tendency for
A. quantity demanded to fall. B. quantity supplied to rise. C. the wage rate to fall. D. the wage rate to rise.
Economics