Question

A major new technological breakthrough creates the opportunity for new profitable products. Why will a reduction...

  1. A major new technological breakthrough creates the opportunity for new profitable products. Why will a reduction in the real interest rate increase investment spending?
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Please EXPLAIN why each answer was chosen 1. reduction in the saving rate will NOT affect...
Please EXPLAIN why each answer was chosen 1. reduction in the saving rate will NOT affect which of the following variables in the long run? A. the amount of capital in the economy. B. output per worker. C. capital per worker. D. the growth rate of output per worker. E. none of the above 2. Which of the following will cause an increase in output per effective worker? A. an increase in the rate of depreciation. B. an increase in...
1) In the steady state of the Solow model with technological progress, which of the following...
1) In the steady state of the Solow model with technological progress, which of the following variables is not constant? (a) capital per effective worker (b) the real rental price of capital (c) the real wage (d) the capital-output ratio 2) The U.S. economy has more/less capital than at the Golden Rule steady state, suggesting that it may be desirable to increase/decrease the rate of saving. 3) The purpose of  exogenous/endogenous growth theory is to explain technological progress. Some of these...
1. Which of the following best describes the interest rate effect? Group of answer choices a...
1. Which of the following best describes the interest rate effect? Group of answer choices a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending. an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending. an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending. an increase in the price...
28- If autonomous spending rises, the expenditure equilibrium will rise by the increase in autonomous spending....
28- If autonomous spending rises, the expenditure equilibrium will rise by the increase in autonomous spending. the expenditure equilibrium will increase by the level of GDP times the expenditure multiplier. the expenditure equilibrium will fall by the increase in autonomous spending. the expenditure equilibrium will rise by the increase in autonomous spending multiplied by the expenditure multiplier. 31- An example of fiscal policy is an increase in autonomous spending by consumers. an increase in social security spending by the elderly....
The interest rate effect, which explains why the AD curve is downward sloping suggest that an...
The interest rate effect, which explains why the AD curve is downward sloping suggest that an increase in the price level?? A) will keep the demand for money constant, keep interest rates constant, and keep consumption and investment spending constant B) will increase the demand for money, increase interest rates, and decrease consumption and investment spending C) will decrease the demand for money, reduce interest rates, and increase consumption and investment spending
1. In Solow model without technological progress, a 5% increase in capital stock K will cause:...
1. In Solow model without technological progress, a 5% increase in capital stock K will cause: Group of answer choices Y to increase by exactly 5%. a decrease in K/N. a decrease in Y/N. no change in Y/N. Y to increase by less than 5%. 2. Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, according to Solow model with technological progress, we know that the output per effective worker...
The interest rate effect on aggregate demand indicates that a(n): A. Decrease in the price level...
The interest rate effect on aggregate demand indicates that a(n): A. Decrease in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending B. Decrease in the price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending C. Increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending D. Increase in the supply of money...
13. Suppose there is an increase in government spending in a closed economy. In medium-run such...
13. Suppose there is an increase in government spending in a closed economy. In medium-run such a fiscal policy will cause: none of the other answers is correct. ambiguous effects on the neutral real interest rate the nominal wage to rise no change in the neutral real interest rate the neutral real interest rate to rise 14. Suppose the economy is initially in the steady state. According to Solow model without technological progress, an increase in the depreciation rate (δ)...
Mutiple Choice: 1-3. A competitive firm hires labor until the marginal product of labor equals the:...
Mutiple Choice: 1-3. A competitive firm hires labor until the marginal product of labor equals the: A. real wage. B. rental price of capital. C. price of output. D. capital/labor ratio 2-3. According to the model developed in Chapter 3, when government spending increases but taxes are not raised, interest rates: A. increase. B. are unchanged. C. decrease. D. can vary. 3-3. . In a closed economy with a fixed total income, a reduction in taxes will cause consumption: A....
DeHass, Inc. is looking at a new investment opportunity that will have an up-front cost of...
DeHass, Inc. is looking at a new investment opportunity that will have an up-front cost of $1,050,000. The company projects that the life of this opportunity will be 6 years. This opportunity will have an annual cost of $30,000 (cash outflow) for upkeep equipment. This $30,000 cost occurs at the end of each year. DeHass, Inc. expects to generate $300,000 cash inflow at the end of the first year from taking on this potential opportunity. Cash inflows at the end...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT