One of the primary determinants of planned real investment spending is the
A) rate of real government spending. B) rate of real saving.
C) expectation of future profits. D) rate of real consumption spending.
C
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What is the opportunity cost of producing capital goods such as a new road?
What will be an ideal response?
If you burn your trash in the backyard in spite of regulations against it, then you are
A) acting economically irrationally and creating a social cost. B) acting rationally and creating a positive externality. C) saving landfill space and creating a social benefit. D) avoiding the private costs associated with disposing your trash some other way and creating a social cost.
If the price elasticity of demand for a good is greater than one in absolute terms, we say that demand is
A) elastic. B) inelastic. C) perfect. D) vertical.
If a firm is wondering whether or not it should "buy or make,"
A) it is exploring its horizontal boundaries. B) it is exploring its vertical boundaries. C) it is exploring the boundaries of its network. D) it is considering a "winner-take-all" event.