Author Question: The data for the U.S. show that investment and profits A) have a strong negative relationship. ... (Read 42 times)

nautica902 · **on:** Jun 30, 2018

The data for the U.S. show that investment and profits

A) have a strong negative relationship.
B) are positively related during recessions, and negatively related during expansions.
C) move independently.
D) are positively related during expansions, and negatively related during recessions.
E) none of the above

Question 2

For this question, assume that investment spending depends only on output and no longer depends on the interest rate. Given this information, an increase in government spending

A) will cause investment to decrease.
B) will cause investment to increase.
C) may cause investment to increase or to decrease.
D) will have no effect on output.
E) will cause an increase in output and have no effect on the interest rate.