menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Macroeconomics Study Set 10
  4. Exam
    Exam 4: Consumption, saving, and Investment
  5. Question
    If Consumers Believe That Next Year a Recession Will Occur
Solved

If Consumers Believe That Next Year a Recession Will Occur

Question 45

Question 45

Multiple Choice

If consumers believe that next year a recession will occur (in a closed economy) ,then the real interest rate ________ and investment ________.


A) falls; declines
B) falls; increases
C) rises; increases
D) rises; declines

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q40: When desired national saving equals desired national

Q41: One way of writing the goods-market equilibrium

Q42: Cummins,Hubbard,and Hassett found that investment responded to

Q43: Suppose the one-year T-bill rate was 5%

Q44: An increase in the price of capital

Q46: What is the q theory of investment?

Q47: Which of the following machines has the

Q48: What is the marginal propensity to consume,and

Q49: Desired national saving would decrease unambiguously if

Q50: An economy has full-employment output of 5000.Government

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines