A lower interest rate makes more investment projects profitable, meaning that:
a. there is a direct relationship between the rate of interest and the quantity of investment spending.
b. there is an inverse relationship between the rate of interest and the quantity of investment spending.
c. there is no relationship between the rate of interest and the quantity of investment spending.
d. the demand curve for investment spending is horizontal.
e. the demand curve for investment spending is vertical.
b
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Does it follow from the false-paradigm model that World Bank economists are intentionally trying to keep developing countries from realizing genuine development? Why or why not?
What will be an ideal response?
In autumn, the Connecticut apple market is perfectly competitive. If market demand increases—resulting, say, from a change in consumer taste—the demand curves faced by each individual firm will, in the long run
a. become vertical b. become less elastic c. remain unchanged d. shift leftward e. shift downward