In November 2016, General Motors produced a car that was delivered to a local dealership in December 2016. The auto was sold to Sharon Smith for personal use in February 2017. Following national income accounting practices, this car would be counted as:
A. investment in 2016 and disinvestment in 2017.
B. consumption in 2016 and consumption in 2017.
C. consumption in 2016 and investment in 2017.
D. disinvestment in 2016 and consumption in 2017.
Answer: A
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Answer the following statement true (T) or false (F)
Keynes' theory of consumption predicts that the aggregate saving rate
A) increases as society becomes richer. B) falls as society becomes richer. C) is constant in the long-run. D) falls with higher incomes in a cross-section of income.
Firms should use a resource up to a point where MRP = P
a. True b. False Indicate whether the statement is true or false
An exchange rate crisis is caused by
A) a sudden and an unexpected collapse in the value of a nation's currency. B) the inability of the IMF to predict the immediate collapse of the currency of a country. C) the adoption of a flexible exchange rate system by a country or group of countries. D) the adoption of a fixed exchange rate system by a country or group of countries.