Accelerator theory refers to the theory of
A) consumption that emphasizes that current consumer spending depends positively on the expected future growth of GDP.
B) investment that emphasizes that current investment spending depends positively on the expected future growth of government spending.
C) consumption that emphasizes that increases in consumption spending will result, through the multiplier effect, in greater increases in GDP.
D) investment that emphasizes that current investment spending depends positively on the expected future growth of GDP.
D
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The demand for loanable funds curve shows that the higher the real interest rate, the
A) more the loanable funds demand curve shifts leftward. B) smaller the demand for loanable funds. C) smaller the quantity of loanable funds demanded. D) larger the demand for loanable funds. E) larger the quantity of loanable funds demanded.
Thinking at the margins means deciding about
a. maximizing goods and services. b. investing with borrowed money. c. adding or subtracting one additional unit of some resource. d. increasing or decreasing technical know-how.