Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 30, Problem 2.1P
To determine
Role of expectations in investment
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If most people have rational expectations, how long will recession last ? Explain.
What other factors besides interest rates will cause the investment demand curve to shift?
Which of the following would not cause shift in the investment demand curve as the above graph shows?
Select one:
a. Business taxes
b. Expectations
c. Changes in real interest rates
d. Acquisition, maintenance, and operating costs
e. Technological change
Chapter 30 Solutions
Principles of Economics (12th Edition)
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