If net investment in 2016 is $550 billion and gross investment in 2016 is $900 billion, depreciation in 2016 is
A. $900 billion.
B. $550 billion.
C. $450 billion.
D. $350 billion.
Answer: D
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Refer to the scenario above. Plutoland's financial account reported a balance of ________ for the year
A) -$4 billion B) $14 billion C) -$10 billion D) $10 billion
Consumer finance companies, because of the __________-term nature of their liabilities, prefer to hold __________-term assets
A) long; long B) long; short C) short; long D) short; short
If the time for an economy to self-correct is shorter than the active policy lags, then:
a. active policy should be strengthened b. active policy is likely to destabilize the economy. c. time is required to accumulate evidence that the economy is performing below its potential. d. the aggregate demand curve shifts more rapidly than the short-run aggregate supply curve. e. active policy will work better than passive policy.
Economic efficiency is achieved
a. when all resources are fairly allocated b. when an economy is producing the maximum possible amount of goods and services c. when production or allocation of goods cannot be rearranged to make one person better off while harming no one else. d. if production or allocation of goods cannot be rearranged to make at least one person better off e. if production or allocation of goods cannot be rearranged in a way the benefits more people than it harms