Consumer expectations and a positive business sentiment would boost
A. investment through aggregate supply.
B. investment through aggregate demand.
C. government spending.
D. investment through aggregate demand and aggregate supply.
Answer: B
You might also like to view...
The price elasticity of supply is higher when
A) the number of producers in the market increases over time. B) the product in question is a complementary good. C) the number of buyers in the market increases. D) producers have less time to adjust to price changes.
A production possibilities frontier shifts outward when
a. the economy experiences economic growth. b. the desires of the economy's citizens change. c. at least one of the basic principles of economics is violated. d. opportunity costs are lessened.
Which of the following correctly describes how an automatic stabilizer would function?
a. During an economic expansion, incomes rise, and thus our progressive income tax claims a larger portion of income, slowing growth in disposable income. b. During an economic expansion, net taxes decline, since income grows faster than taxes, and because there is more income being made to support transfer payments to unemployed and disabled people. c. During a recession, progressive income tax claims a larger portion of income than during periods of economic growth, and government spending declines in order to balance the budget. d. During a recession, an increase in the flow of unemployment insurance taxes from the income stream into the unemployment insurance fund, reduces consumption and aggregate demand.
A security that pays the holder, should mortgage borrowers fail to repay their debts, is a
A. traditional, thirty-year fixed-rate mortgage. B. credit-default swap. C. pay-option adjustable-rate mortgage. D. thirty-year U.S. Treasury bond.