The earnings that a corporation saves for investment in other productive activities are
A) capital gains.
B) tax incidence.
C) transfers in kind.
D) retained earnings.
Answer: D
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Which of the following economic lessons should we take from developing country crises in Latin America (and elsewhere)?
A) Only that it is important to choose the right exchange rate regime. B) Only that banking is of central importance in any government. C) The order in which reform measures are implemented are irrelevant. D) It is important to choose the right exchange rate regime and banking is of central importance in any government. E) The order in which reform measures are implemented are irrelevant and banking is of central importance in any government.
An economic variable that moves in the opposite direction as aggregate economic activity (down in expansions, up in contractions) is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.
If the economy were producing at point A and moved to point B the opportunity cost in terms of lost production of robots would be
A. 1 unit of robots.
B. 2 units of robots.
C. 3 units of robots.
D. 2 units of outboard motors.
Which of the following is not considered part of M2?
A. small time deposits of less than $100,000 B. money market mutual fund shares C. savings deposits D. large time deposits of more than $100,000