Economic investment refers to:
A. Buying a financial asset for a gain
B. Selling a financial asset for a gain
C. Postponing purchases of goods and services
D. Making new additions to a firm's stock of capital
D. Making new additions to a firm's stock of capital
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In the above figure, suppose that the government sets a limit that may be produced of 10 units of output and the price rises to $4. In comparison to a competitive market the producer surplus would rise by
A) $0. B) $5. C) $15. D) $20.
If a person withdraws $500 from his/her savings account and puts it in his/her checking account, then M1 will ________ and M2 will ________
A) not change; not change B) not change; increase C) increase; not change D) not change; decrease E) increase; decrease
Computer forecasting models have
a. been able to forecast changes in the growth rate of real GDP with considerable accuracy. b. had only limited success predicting turns in key economic variables such as real GDP. c. been able to accurately forecast the future direction of inflation but not real GDP. d. been able to accurately forecast the future direction of real GDP but not inflation.
Restrictive monetary policy will:
A. Decrease the lending capacity for banks. B. Reduce interest rates. C. Cause a rightward shift of aggregate demand. D. Raise the equilibrium price level.