If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:
A. investment will take place until i and r are equal.
B. investment will take place until r exceeds i by the greatest amount.
C. r will rise as more investment is undertaken.
D. i will fall as more investment is undertaken.
A. investment will take place until i and r are equal.
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Which of the following is included in GDP?
a. a U.S. company purchasing stock of a foreign company b. a foreign company purchasing stock of a U.S. company c. a U.S. company purchasing stock of another U.S. company d. None of the above.
Which of the following is true of other checkable deposits?
a. They are checking account deposits at commercial banks and do not pay any interest. b. They are accounts at financial institutions that pay interest and give the depositor check-writing privileges. c. They comprise solely of demand deposits at mutual savings banks. d. They are not included in the M1 money supply. e. They are savings deposits that earn interest at savings and loan associations.
Marginal physical product is
a. the increase in input usage resulting from an increase in revenue. b. the same as marginal revenue product. c. equal to average physical product when a monopoly firm is in equilibrium. d. the increase in output stemming from a one-unit increase in input.
The concept that for each additional unit of a good the added satisfaction you receive from consuming the good decreases is called _____?
A. Diminishing marginal utility B. Chaos concept C. Self-interest utility D. Rational choice theory