An increase in aggregate demand is most likely to be caused by:
A. An increase in real interest rates
B. A decrease in government spending
C. A decrease in expected returns on investment
D. A decrease in the tax rates on household income
D. A decrease in the tax rates on household income
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The net result of deflation is to:
A. decrease consumption and investment, decreasing aggregate demand. B. decrease consumption and increase investment, decreasing aggregate demand overall. C. increase consumption and investment, increasing aggregate demand. D. increase consumption and decrease investment, increasing aggregate demand overall.
Which of the following would economists label as an example of the "tragedy of the commons?"
A. The over-fishing of the oceans B. The use of pesticides on private farm land C. The use of growth hormone on cattle D. The neighbor who does not mow his yard