Money that a firm uses to buy the physical plant, equipment, and raw materials for production is called
a. profit
b. loanable funds
c. marginal revenue product of capital
d. capital equipment
e. total physical product of capital
B
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The two most important developments in global capital markets over the last few decades are
A) the growth in FDI within developed countries and private capital flows to emerging economies. B) the growth in FDI to emerging economies and private capital flows within developed countries. C) the growth of cross-border mergers and acquisitions and the stabilization of exchange rate regimes. D) the growth of cross-border mergers and acquisitions and private capital flows within developed countries.
If the government increases taxes while holding expenditures constant,
A) the bond supply curve will shift to the left and the equilibrium interest rate will fall. B) the bond supply curve will shift to the right and the real interest rate will fall. C) government borrowing will be increased. D) the government's deficit will increase.
Which of the following is a factor that affects both the supply of and demand for a good?
A. Technology B. Price of inputs C. Consumers' income D. Government regulations
Macroeconomic models help clarify important questions such as the following, excep
A. Can governments reduce the severity of their economies' recessions? B. Is a policy of manipulating interest rates more effective at mitigating short-run economic fluctuations than a policy of changing the tax rates? C. How will OPEC manipulate and maintain the price of crude oil in the world markets? D. Is there a trade-off between lower unemployment and lower inflation?