Other Things Equal, If the Real Interest Rate Falls and Business

question 220

Multiple Choice

Other things equal, if the real interest rate falls and business taxes rise,

• A) investment will rise until it is equal to saving.
• B) we will be uncertain as to the resulting change in investment.
• C) we can be certain that investment will rise.
• D) we can be certain that investment will fall.

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An accounting practice used for reporting resources that have been restricted by donors or grantors.

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Funds received by an organization that are designated for specific purposes by the donor, restricting their use by the recipient.

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