When the money supply decreases, other things being equal,
a. real interest rates fall and investment spending rises.
b. real interest rates fall and investment spending falls.
c. real interest rates rise and investment spending falls.
d. real interest rates rise and investment spending rises.
Question 2
Total factor productivity is the ratio of a:
a. firm's marginal revenue to its marginal cost.
b. firm's total revenues to its total costs.
c. nation's total income to its total output.
d. nation's output to its stock of labor and capital.
e. nation's savings to its capital stock.
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Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
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