Investment spending ________
A) is comprised of fixed and inventory investment
B) is negatively related to the real interest rate
C) is heavily influenced by what Keynes coined as "animal spirits"
D) all of the above
E) none of the above
D
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The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the price of salt is $0.40 per pound. The demand for salt is perfectly inelastic and the elasticity of supply is 1.5
With the tax, the price of salt paid by buyers in Healthyland is A) $0.40 per pound. B) $0.45 per pound. C) $0.35 per pound. D) $0.50 per pound.
An unexpected import restriction imposed on mangoes by the USDA
A) will reduce the price of mangoes in the United States. B) will increase the price of mangoes in the United States. C) will discourage American producers of mangoes. D) will reduce the price of mango juice in the United States.
Suppose a lottery ticket costs $1 and the probability that a holder will win nothing is 99.9%. What must the jackpot be for this to be a fair bet?
a. 10 b. 100 c. 1,000 d. 10,000
Which of the following is in charge of U.S. aid to foreign countries?
a. International Monetary Fund (IMF) b. Agency for International Development (AID) c. New International Economic Order (NIEO) d. World Bank