The funds used to purchase capital goods are called
A. dividends and interest.
B. savings.
C. investment.
D. financial capital.
Answer: D
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What is the "good news" and the "bad news" about a higher value of the U.S. dollar?
What will be an ideal response?
Moving along a country's PPF, a reason opportunity costs increase is that
A) unemployment decreases as a country produces more and more of one good. B) unemployment increases as a country produces more and more of one good. C) technology declines as a country produces more and more of one good. D) some resources are better suited for producing one good rather than the other. E) technology must advance in order to produce more and more of one good.
Which of the following is an example of spending on factors of production in the circular flow model?
A) The "Lucky Ducky" casino buys a new craps table for the casino floor. B) Laurence rents a car to drive to a wedding in San Diego. C) Yvette pays $50 to join a softball league. D) Tuan purchases a cappuccino at the student union.
The speculative demand for money shows the relationship between money demand and:
a. income levels. b. interest rates. c. prices d. investment. e. consumption.