chapter_9_long

E real interest rates to rise 45 46 the marginal

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Unformatted text preview: to MP K - l + d A) . (l + r) 46) B) C) D) E) MP K ( l - d) (l + r) MP K + l - d (l + r) MP K - l - d (l + r) MP K + l + d (l + r) . . . . 47) For the economy as a whole, investment represents a tradeoff between A) savings and investment. B) present and future consumption. C) government spending and issuing debt. D) real interest rates and GDP. E) interest rates and taxes. 47) 48) A temporary increase in government spending that leads to only a small decline in lifetime wealth likely shifts the output demand curve to the A) right by less than the rightward shift in output supply. B) right by more than the rightward shift in output supply. C) right by the same amount as the rightward shift in output supply. D) left by more than the leftward shift in output supply. E) left by less than the leftward shift in output supply. 48) 49) The equilibrium effects of a prospective future increase in total factor productivity include A) an increase in the real wage and an increase in the real interest rate. B) an increase in the real wage and a decrease in the real interest rate. C) a decrease in the real wage and...
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This document was uploaded on 02/24/2014 for the course ECON 2152 at UWO.

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