In the Long Run,an Increase in the Demand for Investment

question 81

Multiple Choice

In the long run,an increase in the demand for investment pushes ________ the real interest rate,encourages ________ saving by households,and leads to a ________ future growth rate of potential output.

• A)down; less; lower
• B)up; less; lower
• C)down; less; higher
• D)up; more; higher
• E)up; more; lower

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Definitions:

Alexis De Tocqueville

A French political thinker and historian best known for his works "Democracy in America" (1835), where he explores American society, its democratic institutions, and its political culture.

Market Revolution

A period of economic transformation in the United States during the early 19th century, characterized by a shift from subsistence farming to large-scale agriculture, and the emergence of regional and national markets.

Skilled Craftsmen

Individuals who possess expert knowledge and proficiency in a particular craft or trade, often requiring manual dexterity and the use of tools.

Economic Freedom

The ability of individuals and businesses to engage in economic activities without undue government intervention, leading to greater prosperity and societal well-being.