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 17 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
Great answer, keep it coming :)

emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi
projections of future oil production projections of future oil production
Colles’ A break in the distal portion of the radius; often the result of reaching out to cushion a f Colles’ A break in the distal portion of the radius; often the result of reaching out to cushion a f
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
Ionic Equilibria - Weak Acid and their conjugate Base Ionic Equilibria - Weak Acid and their conjugate Base
Competitive firms and maximization Competitive firms and maximization
Video: Stomach peristalsis & Enterogastric reflex

For a complete list of videos, visit our video library