The effects on the economy of a prolonged decrease in investment are ________ if ________ occurs
A) more pronounced; consumers adjust permanent income downwards
B) less pronounced; consumers do not adjust permanent income upwards
C) more pronounced; consumers adjust permanent income upwards
D) less pronounced; consumers adjust permanent income downwards
A
Economics
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The "law" of diminishing returns is also referred to as
a. the "law" of diminishing returns to scale. b. the "law" of variable input proportions. c. diminishing average physical product. d. the "law" of decreasing cost.
Economics
The economy is experiencing a recession combined with inflation. The self-correction school would say the proper response is to_____.
A. increase government spending B. increase regulations on new research projects C. do nothing D. increase the money supply
Economics