Suppose that an international incident occurs that creates uncertainty in the market. It is likely that this incident will ________ the level of private investment spending.
A. increase
B. decrease
C. neutralize
D. not affect
Answer: B
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Game theory can be used for studying which of the following types of market structure?
A) monopoly B) monopolistic competition C) oligopoly D) perfect competition
Refer to Figure 7.1. At output level Q1
A) marginal cost is falling. B) average total cost is falling. C) average variable cost is less than average fixed cost. D) marginal cost is less than average total cost. E) all of the above
Reserves that the Fed injects into the banking system are ultimately
a. converted into loans that banks make to other banks b. distributed among different banks in the system as required reserves c. end up in just two or three banks d. ineffective at increasing money supply e. important to banks that want more customers
Suppose the Organization of Petroleum Exporting Countries (OPEC) sharply increased the price of oil, which triggered higher inflation rates in the United States. This type of inflation is best classified as:
A. pseudo-inflation. B. demand-pull inflation. C. cost-push inflation. D. hyperinflation.