Refer to Figure 21-3. Which of the following is consistent with ...

[acc299]

Refer to Figure 21-3. Which of the following is consistent with the graph depicted above?
 
  A) Taxes are changed so that real interest income is taxed rather than nominal interest income.
  B) Technological change increases the profitability of new investment.
  C) The government runs a budget deficit.
  D) An expected recession decreases the profitability of new investment.
 
  Figure 21-4

Question 2

Technological change allows the economy to produce more output with the same amount of capital and labor.
 
  Indicate whether the statement is true or false

[ky860224]

Answer to Question 1

A

Answer to Question 2

TRUE

[acc299]

Thanks for the timely response, appreciate it

[ktidd]

Gracias!