Author Question: Changes in real planned investment spending have A) an inverse relationship to changes in the ... (Read 129 times)

nummyann · **on:** Jun 30, 2018

Changes in real planned investment spending have

A) an inverse relationship to changes in the interest rate.
B) no identifiable relationship to changes in the interest rate.
C) a direct relationship to changes in the level of household savings.
D) a direct relationship to changes in interest rates.

Question 2

Consider two countries-country A and B. Both economies are exactly similar in all aspects except for one. There are well-defined property rights in country A, while there are no property rights in country B.

Given this information, which of the following statements is likely to be true?
A) Economy A is likely to grow faster than economy B.
B) Economy B is likely to grow faster than economy A.
C) Both economies are likely to grow at the same rate.
D) None of the countries is likely to experience any growth in GDP.