(Key Question) Consider a nation in which the volume of goods and services is
growing by 5 percent per year. What is the likely impact of this high rate of
growth on the power and influence of its government relative to other countries
Chapter 8 Practice Problems #2 Key
1. As the consumption and saving schedules relate to real GDP, an increase in taxes will shift:
A) upward both the consumption and saving schedules.
B) downward both the consumption and saving schedules.
C) the consumpti
Answer: b 89. The investment-demand curve will shift to the right as a result of a(n):
(a) increase in the excess productive capacity available in the indUstry. .
(b) decrease in the acquisition and maintenance cost of capital goods.
(c) decrease in the