If Business Executives Become More Optimistic About the Future, We

question 390

Multiple Choice

If business executives become more optimistic about the future, we would expect that

• A)the investment curve would shift outward to the right.
• B)the saving function would shift up.
• C)the consumption curve would shift up.
• D)investment spending would decrease.

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Definitions:

Collude

To agree secretly among competitors to fix prices, bids, or terms of sale in order to manipulate a market.

Gasoline Sellers

Businesses or entities that offer gasoline for sale to consumers, ranging from multinational corporations to local gas stations.

Socially Efficient Quantity

The level of production of a good or service that optimizes social welfare, taking into account both private costs and externalities.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers, holding all other factors affecting demand constant.