Planned investment is the:
A. spending households engage in based on forecasted budget.
B. amount that firms decide to allocate to inventory accumulation.
C. investment that a firm decides upon as a result of temporary market changes.
D. amount that firms decide to allocate to new capital resources and inventory accumulation.
D. amount that firms decide to allocate to new capital resources and inventory accumulation.
You might also like to view...
Of the following, who gains because of tariffs and why?
A) domestic producers of protected goods because they can sell at a higher price B) domestic buyers because they can be sure of buying high-quality products C) foreign producers because they earn more total revenue D) foreign government because they gain more revenue E) domestic buyers because they pay a lower price
A financial crisis is
A) not possible in the modern financial environment. B) a major disruption in the financial markets. C) a feature of developing economies only. D) typically followed by an economic boom.
If the value of intermediate goods and services are included in GDP, then:
a. GDP would be understated. b. GDP would act as a true indicator of economic welfare. c. there would be double-counting. d. it would lead to depreciation. e. GDP would be able to give an exact estimate of the inventory in an economy.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions become more positive (or less negative). b. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions remain the same. d. The quantity of real loanable funds per time period rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.