45° line diagrams show how
A. investment varies with income.
B. expenditures vary with income.
C. investment spending rises when GDP rises.
D. GDP is affected by government purchases.
Answer: B
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How does the United States compare to other advanced, industrialized economies on the issue of openness?
a. It is completely closed. b. It is one of the less open of them. c. It is about average in openness. d. It is one of the more open of them. e. It is the most open of them.
A particular cable TV company requires a household to subscribe to its high-speed Internet service if it subscribes to cable TV, and vice versa. This practice
a. is referred to as tying. b. is regarded by some economists as a form of price discrimination. c. is controversial among economists because they disagree on whether it has adverse effects for society as a whole. d. All of the above are correct.
Crowding out is reduction in:
A. corporate borrowing that is caused by an increase in private borrowing. B. private borrowing that is caused by an increase in government borrowing. C. private borrowing that is caused by an increase in corporate borrowing. D. government borrowing that is caused by an increase in private borrowing.
The success of a cartel rests upon
A) inducing all members to limit their combined output and charge the same price. B) inducing all members to differentiate their products and charge different prices. C) making exit from the cartel as nearly costless as possible. D) discouraging some firms in the market from joining.