You are watching: Other things equal, an increase in the interest rate leads to:
At any particular point in time, the output of the economy:-is fixed due to the fact that the demand for goods and also services is fixed.-varies since the technology for transforming capital and labor into goods and also services varies.-varies since the offers of capital and labor vary.-is fixed since the supplies of capital and labor and also the an innovation are fixed.
A competitive, profit-maximizing firm rental labor till the:-price of output multiplied by the marginal product of labor equates to the wage.-real wage equates to the actual rental price of capital.-wage equates to the rental price that capital.-marginal product of labor equals the wage.
According come the neoclassical theory of distribution, full output is divided in between payments to capital and payments come labor depending on their:-marginal productivities.-relative politics power.-supply.-equilibrium growth rates.
In a Cobb-Douglas production role the marginal product of job will rise if:-the quantity of labor increases.-capital"s share of output increases.-the quantity of capital increases.-average labor productivity decreases.
According come the neoclassical concept of distribution, in an economy defined by a Cobb-Douglas manufacturing function, when typical labor performance is cultivation rapidly:-economic earnings will it is in positive.-workers will experience high rates of actual wage growth.-labor"s share of total income will be increasing.-labor"s re-publishing of income will be decreasing.
If the consumption role is offered by C = 150 + 0.85Y and also Y boosts by 1 unit, climate C increases by:-0.85 units.-0.5 units.-0.15 units.-1 unit.
Other points equal, an increase in the interest price leads to:-sometimes boost and occasionally a decrease in the quantity of investment products demanded.-a decrease in the amount of investment goods demanded.-no change in the quantity of investment items demanded.-an boost in the amount of investment products demanded.
Consumption counts positively ~ above ______ and also investment relies negatively on ______.-the real interest rate; disposable income-public saving; exclusive saving-private saving; publicly saving-disposable income; the real interest rate
The equation F = C(Y-T)+I(r) + G might be fixed for the equilibrium level of:-income.-the interest rate.-consumption.-government purchases.
National conserving refers to:-income minus consumption minus federal government spending.-taxes minus federal government spending.-disposable income minus consumption.-income minus investment.
In equilibrium, complete investment equals:-private saving.-national saving.-public saving.-household saving.
If conserving exceeds investment demand, and consumption is no a duty of the interest rate:-the interest rate will rise.-the interest price will fall.-saving will certainly fall.-the need for loans exceeds the supply of loans.
According come the model emerged in thing 3, when government spending increases without a adjust in taxes:-investment increases.-investment decreases.-consumption increases.-consumption decreases.
In the neoclassical model with fixed income, if there is a decrease in government spending with no readjust in taxes, climate public conserving ______ and private conserving ______.-decreases; does no change-decreases; increases-increases; increases.-increases; does not change
When federal government spending increases and taxes are raised by an same amount, attention rates:-increase.-can differ wildly.-remain the same.-decrease.
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Assume that boost in customer confidence raises consumers" expectations of future income and also thus the lot they want to consume today for any type of given income. This shift, in a neoclassical economy, will:-lower investment and raise the interest rate.-raise both investment and also the attention rate.-lower both investment and also the interest rate.-raise investment and lower the attention rate.
Solutions hands-on for Use v Essentials that Investments7th EditionAlan J. Marcus, Alex Kane, Bruce Swensen, Zvi Bodie
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