Unformatted text preview: of borrowing to make new investments in
buildings or equipment
b. Lower rates reduce the cost of mortgages and increase the demand for
c. Lower rates ease financial pressures on firms and help them stay in business
d. Lower mortgage rates leave more money for consumers to spend on
e. None of the above; all are reasons why lower rates help stimulate the
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er Te ID 1 185 t ID: Tes 28. Which of the following is NOT one of the major expenditure components of
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Wages and Salaries
None of the above; All are expenditure components of GDP. r 43
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government spending on nursing homes
government spending on low-cost housing
a larger (physical) capital stock
none of the above.
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r ID: Te : Te st ID : 18 51 30. Which of the following is among the possible sources for labour productivity
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Higher corporate taxes
Reduced government spending on low-cost housing
A larger physical capital stock
None of the above; None are sources of labour productivity growth om y.
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