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27) 27) Which of the following statements is TRUE? A) Investment is always less than savings. B) There is an inverse relationship between investment and
27) 27) Which of the following statements is TRUE? A) Investment is always less than savings. B) There is an inverse relationship between investment and the interest rate. C) There is no relationship between investment and the interest rate. D) There is a direct relationship between investment and the interest rate. 28) 28) In the classical model, a rightward shift in the aggregate demand curve will, in the long run, A) decrease real GDP and will not change the price level. B) increase real GDP and the price level. C) increase real GDP and will not change the price level. D) not change real GDP and will increase the price level. 29) 29) According to the classical model, prices and wages A) move upward easily, but are "sticky" downward. B) move downward easily, but are "sticky" upward. C) are flexible. D) must be set by government
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