If the interest rates suddenly increase, it could cause a shift in the economy from the prosperity phase to the downturn phase in
a. the innovation cycle
b. the war-induced cycle
c. the housing cycle
d. the real business cycle
e. internal cycles
C
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For a given elasticity of demand, the less elastic the supply, the
A) larger the deadweight loss from a tax. B) larger the share of a tax paid by the sellers. C) greater the burden on the government from a tax. D) greater is the excess burden from a tax. E) larger the share of a tax paid by the buyers.
Based on the Saving-Investment Diagram, if the difference between values G and E measures the net capital outflow, then ________
A) the difference between values G and E measures the trade surplus B) the difference between values H and D measures the trade surplus C) the domestic real interest rate is indicated by B D) desired saving has decreased E) none of the above