(Consider This) During the Great Recession of 2007-2009, Both Real

question 91

Multiple Choice

(Consider This) During the Great Recession of 2007-2009, both real interest rates and investment spending declined.This suggests that

• A)the investment demand curve was positively sloped during this period.
• B)purchases of capital from abroad increased, and these were not reflected in investment spending figures for that period.
• C)firms were optimistic about future sales.
• D)the investment demand curve shifted inward.Topic: Shifts of the Investment Demand Curve Topic: The Interest-Rate-Investment Relationship

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Definitions:

More Elastic

Describes a situation where the demand for a product or service is more sensitive to changes in price, meaning consumers are more likely to increase or decrease their quantity demanded in response to price changes.

Shoes in General

Footwear items designed to protect and provide comfort to human feet while offering varying degrees of style and fashion.

Own-price Elasticity

a measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Number of Substitutes

The quantity of alternative products or services that consumers can choose from in a market.