Multiple Choice
The destruction of capital
A) benefits an economy, as higher investment must make output go up.
B) necessarily makes output go down.
C) makes real interest rates go down.
D) has no effect on the economy at all.
E) may increase employment enough that output increases.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: An increase in government spending<br>A) increases taxes
Q27: The marginal rate of substitution of future
Q28: The intertemporal substitution of leisure effect is
Q29: When there is a temporary increase in
Q30: The condition MRS<sub>1,C</sub> = w describes the
Q30: The condition MRS<sub>1,C</sub> = w describes the
Q32: The assumption that current-period consumption demand is
Q34: The assumption that current-period labour supply is
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