chapter_9_long

B propensity to consume c product of capital d

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Unformatted text preview: C) product of capital. D) propensity to save. E) benefit from investment. 13) 14) When drawn against the real interest rate, the output demand curve shifts to the right when A) current capital stock decreases. B) real wage rate increases. C) current capital stock and real wage rate increases, D) current capital stock increases. E) real wage rate decreases. 14) 15) Investment will be more variable if the real interest rate is A) less variable and future total factor productivity is more variable. B) is constant with total factor productivity. C) less variable and future total factor productivity is less variable. D) more variable and future total factor productivity is less variable. E) more variable and future total factor productivity is more variable. 15) 16) When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if either or both of the following occur. A) an increase in current taxes and an increase in future taxes B) an increase in current taxes and a decrease in future taxes C) an increase in current taxes and a reduction in interest rates. D) a decrease in current taxes a...
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