Investment, a key component of aggregate demand, can cause recessions and booms based on fluctuations in its levels

Indicate whether the statement is true or false


TRUE

Economics

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The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of rice to 12 tons?

A) 6 thousand bottles of wine B) 9 thousand bottles of wine C) 15 thousand bottles of wine D) 12 tons of rice E) Nothing, it is a free lunch.

Economics

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country

Indicate whether the statement is true or false

Economics

What is a subgame?

A) It is a simultaneous game embedded in a sequential game. B) It is one that starts at the final decision node of the tree. C) It is one that begins at any decision node of the tree except the first decision node. D) It is one that begins at any node of the tree, including the game itself.

Economics

The purchase of a virtual item from an online company with a virtual currency causes the nation's:

a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.

Economics