A decrease in government purchases or an increase in taxes, other things being equal, will tend to:
a. increase interest rates and decrease investment as a result.
b. increase interest rates and increase investment as a result.
c. decrease interest rates and decrease investment as a result.
d. decrease interest rates and increase investment as a result.
d
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The difference between inventories and inventory investment is that typically ________
A) the first one is a stock of unfinished or unsold goods; the second one is a flow that indicates productive activity B) the first one denotes the change in holdings of capital; the second one includes most final goods C) the first one is measured at the beginning of the year; the second one is measured at the end of the year D) all of the above E) none of the above
Suppose Alice is deciding whether or not to go to a New York Giants game. Alice's enjoyment and thus decision, depends upon two uncertain events that are out of her control: whether the Giants win and whether it snows. She will be happiest if the Giants win and it does not snow. The newspaper reports a 35% chance for snow and the Giants record suggests a 40% chance of winning. The probability that the Giants win and that it does not snow is:
A. 75%. B. 5%. C. 26%. D. 35%.