In a Feasible Problem, an Equal-To Constraint Cannot Be Nonbinding

question 46

True/False

In a feasible problem, an equal-to constraint cannot be nonbinding.

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Definitions:

Demand for Investment

The amount of spending on investment goods, such as machinery and buildings, that businesses and governments are willing to undertake at various interest rates.

Government Budget Deficit

The financial situation that occurs when a government spends more money than it receives in revenue over a given fiscal period.

Interest Rate

The number of dollars earned per dollar invested per period.

Real Rate

The rate of interest an investor expects to receive after allowing for inflation, reflecting the true cost of borrowing and the true yield on investments.