ECON 302 Intermediate Microeconomic
Theory II summer midterm exam prep
possible questions and answers 2024
Concordia University
, ECON 302 Intermediate Microeconomic Theory II summer midterm exam prep possible
questions and answers 2024 Concordia University
National Savings refers to - --total output - consumption expenditure - government purchases
The real interest rate is - --- the cost of borrowing adjusted for inflation
- describes the real benefit of saving
- keeps the market for saving and investment in equilibrium
Increases in ________ typically lead to decreases consumption - --real interest rate
Decreases in interest rates typically lead to increases in - --investment
Increases in disposable income typically lead to increase in - --consumption
Increases in autonomous investment typically lead to increases in - --investment
In a closed economy, if consumers become more optimistic - --the equilibrium interest rate
should increase
If government cuts taxes - --disposable income goes up
An investment tax credit - --- is designed to incentivize higher capital stock expenditures at
any given interest rate
- may lead to increases in autonomous investment
- may put upward pressure on the interest rate
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