This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If firms are more pessimistic and believe that future profits will fall and remain weak for the next ... (Read 63 times)

cookcarl

  • Hero Member
  • *****
  • Posts: 539
on: Jun 29, 2018
If firms are more pessimistic and believe that future profits will fall and remain weak for the next few years, then
 
  A) investment spending will remain unaffected. B) investment spending will rise and then fall.
  C) investment spending will rise. D) investment spending will fall.

Question 2

Refer to Figure 26-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising.
 
  Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from
  A) A to B. B) B to C. C) C to D. D) C to B. E) A to E.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nothere

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

D


cookcarl

  • Member
  • Posts: 539
Reply 2 on: Jun 29, 2018
Excellent

elyse44

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

teach their children to care for the earth in hopes of passing on a better world to future generatio teach their children to care for the earth in hopes of passing on a better world to future generatio
Fall Fall
Past and Future Use of Aggregate Past and Future Use of Aggregate
Effect of pH on drug absorption: (a) A weak acid such as aspirin (ASA) is in a nonionized form in an ... Effect of pH on drug absorption: (a) A weak acid such as aspirin (ASA) is in a nonionized form in an ...
Computers Are Your Future Complete Computers Are Your Future Complete
Spaceman Speff orbits planet X with his spaceship. To remain in orbit at 556 Spaceman Speff orbits planet X with his spaceship. To remain in orbit at 556
Video: Action potentials - electrical characteristics and generation

For a complete list of videos, visit our video library