Consider two interest rate levels, and is, and the corresponding total demand curves Z, and Z, in the usual graph. Hint: recall that the usual graph plots the demand curves with demand for goods on the vertical axis and production on the horizontal axis Question: if firms become more sensitive to interest rates in their investment decisions, then..... Select one: a Z, and Z₂ will shift but remain at the same distance. b. Z and Z₂ will shift down by the same amount c. Z and Z₂ will be further apart d.Z, and Z₂ will be nearer
Consider two interest rate levels, and is, and the corresponding total demand curves Z, and Z, in the usual graph. Hint: recall that the usual graph plots the demand curves with demand for goods on the vertical axis and production on the horizontal axis Question: if firms become more sensitive to interest rates in their investment decisions, then..... Select one: a Z, and Z₂ will shift but remain at the same distance. b. Z and Z₂ will shift down by the same amount c. Z and Z₂ will be further apart d.Z, and Z₂ will be nearer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider two interest rate levels, and is, and the corresponding total
graph. Hint: recall that the usual graph plots the demand curves with demand for goods on the vertical axis and production on the horizontal axis
Question: if firms become more sensitive to interest rates in their investment decisions, then.....
Select one:
a Z, and Z₂ will shift but remain at the same distance.
b. Z and Z₂ will shift down by the same amount
c. Z and Z₂ will be further apart
d.Z, and Z₂ will be nearer
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