Aggregate private spending is unstable according to policy activists, primarily because
A) consumer non-durable spending is volatile.
B) private residential and non-residential investment is volatile.
C) government spending is volatile.
D) the money supply is unstable.
B
You might also like to view...
The marginal cost curve is U-shaped because of the law of increasing opportunity costs
Indicate whether the statement is true or false
Are there key differences between an increase in the capital stock and an improvement in the level of technology?
Which of the following statements is correct regarding a tax on a good and the resulting deadweight loss?
a. The greater are the price elasticities of supply and demand, the greater is the deadweight loss. b. The greater is the price elasticity of supply and the smaller is the price elasticity of demand, the greater is the deadweight loss. c. The smaller are the decreases in quantity demanded and quantity supplied, the greater the deadweight loss. d. The smaller is the wedge between the effective price to sellers and the effective price to buyers, the greater is the deadweight loss.
Table 5.1National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$4,565Exports$740Government purchases of goods and services$1,465Social Security taxes$510Net investment$225Indirect business taxes$520Imports$825Gross investment$865Corporate income taxes$185Personal income taxes$750Corporate retained earnings$45Net foreign factor income$20Government transfer payments to households$690Net interest payments to households$0On the basis of Table 5.1, depreciation is
A. $85 billion. B. $50 billion. C. $640 billion. D. $690 billion.