ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 19

would anticipate: A. higher interest rates, a contracted GDP, and
depreciation of the
dollar. B. lower interest rates, a contracted GDP, and appreciation of
the dollar. C.
lower interest rates, an expanded GDP, and appreciation of the dollar.
D. lower
interest rates, an expanded GDP, and depreciation of the dollar.
36) Other things equal, a 10 percent decrease in corporate income
taxes will: A.
shift the investment-demand curve to the right. B. shift the
investment-demand
curve to the left. C. have no effect on the location of the investmentdemand curve.
D. decrease the market price of real capital goods.
37) The quantity theory of the demand for money states that a
country’s money
supply is proportional to: A. The exchange rate. B. The money value
of gross
domestic product. C. The real level of gross domestic product. D. The
domestic
interest rate.
38) Suppose that US prices rise 4 percent over the next year while
prices in Mexico