Which of the following is a component part of investment spending?
A) the purchase of a new microwave by a fast food restaurant
B) the purchase of 500 shares of corporate stock
C) the sale of 500 shares of corporate stock
D) all of the above
A
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One of the monetary policy goals of the Federal Reserve is price stability
Indicate whether the statement is true or false
If the price of beef jerky rises, the substitution effect due to the price change will cause
A) an increase in the demand for hot sauce, a complement for beef jerky. B) a decrease in the quantity of beef jerky demanded. C) an increase in the quantity of beef jerky demanded. D) an increase in the demand for beef jerky.
GDP is $16 trillion. If consumption is $10 trillion, investment is $2 trillion, and Government purchases are $4 trillion then
a. exports are equal to imports. b. net exports are positive. c. net exports are negative. d. there is a balance of trade deficit.
The merits of a patent system include:
A. the patent system gives firms strong incentives to take the risk of substantial research and development costs. B. the patent system may precipitate the development of new products. C. granting monopoly power through a patent may be beneficial from society's perspective. D. All of these.