If actual investment exceeds planned investment
A. there will be no change in inventories.
B. there will be a decline in inventories.
C. there will be an accumulation of inventories.
D. none of the above.
Answer: C
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Which of the following is a flow in the circular flow model?
A) the flow of profit and the flow of revenue B) the flow of income earned by firms and the flow of expenditures earned by households C) the flow of revenue received by firms and the flow of payments to resource owners D) the flow of goods and services from households to firms
A nation with an official settlements balance of -$100 billion is likely to experience a:
A) balance of payments surplus and accumulate $100 billion in international reserves B) balance of payments deficit and accumulate $100 billion in international reserves C) balance of payments surplus and a decline of $100 billion in international reserves D) balance of payments deficit and a decline of $100 billion in international reserves
What is the relationship of bondholders to a company?
a. Bondholders owe the company a debt. b. The company owes bondholders a debt. c. Bondholders own part of the company. d. The company earns interest from the bondholders.
The term utility refers to the:
A. pleasure or satisfaction a consumer receives upon consuming a good. B. necessity of a good. C. price of a good. D. number of goods a consumer has.