Author Question: Which of the following happens if the real interest rate of an economy rises? A) Labor demand ... (Read 63 times)

mckennatimberlake · **on:** Jun 30, 2018

Which of the following happens if the real interest rate of an economy rises?

A) Labor demand increases. B) Labor supply falls.
C) Investment falls. D) Consumption increases.

Question 2

The idea that a 1 increase in infrastructure spending will generate more than 1 in economic growth is a representation of

A) the multiplier effect. B) an automatic stabilizer.
C) an outside lag. D) an inside lag.