Author Question: Other things constant, when household time preferences ________, business investment tends to ... (Read 57 times)

craiczarry

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Other things constant, when household time preferences ________, business investment tends to ________.
 
  A) fall; fall
  B) fall; rise
  C) rise; fall
  D) rise; rise

Question 2

Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?
 
  What will be an ideal response?



scottmt

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Answer to Question 1

B

Answer to Question 2

An advance in technology increases the supply of computers. Hence increases in technology shift the supply curve of computers rightward.



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