The investment demand curve will shift to the left as the result of:
A. Business pessimism about future economic conditions
B. Limited available productive capacity
C. An increase in the interest rate
D. A decrease in business taxes
A. Business pessimism about future economic conditions
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In the short run when prices don't have enough time to change, the Federal Reserve
A) can influence the level of interest rates in the economy but generally will not because it would be destabilizing. B) can only affect the amount of money in the economy. C) can influence the level of interest rates in the economy. D) cannot influence the level of interest rates in the economy.
In the above figure, what is the magnitude of the marginal rate of substitution (MRS) at point a?
A) 1/2 B) the rate at which the consumer will give up magazines to purchase more CDs while preferring the new combination to the old C) 2 D) The question cannot be answered without more information.