Referring to Table 12.2, if the nominal interest rate is 8.5 percent and there is no inflation, which investments will be undertaken?

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb, where QD is the quantity of pizza demanded, P is the price of a pizza, and Pb is the price of a burrito. What is the slope of this demand function, and what information does the slope provide?

What will be an ideal response?

Which of the following will cause consumption to increase and aggregate demand to shift to the left?

a. an optimistic business forecast of future income growth b. increased consumer wealth c. an increase in consumer confidence d. none of the above