The most volatile component of total investment spending is ________
A) construction spending by firms
B) spending by firms on equipment
C) residential construction by households
D) inventory investment
D
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Suppose demand can be described with the equation Q = 900?5P and supply with the equation Q = 100 + 5P. Complete the following table. Determine the equilibrium price and quantity. ? Quantity Quantity Surplus/ Price Demanded Supplied Shortage $100 _____ _____ _____ 95 _____ _____ _____ 90 _____ _____ _____ 85 _____ _____ _____ 80 _____ _____ _____ 75 _____ _____ _____ 70 _____ _____ _____ 65 _____ _____ _____ 60 _____ _____ _____ ? ?
What will be an ideal response?
Market consumer surplus
A) is the area under the demand curve and above market price, up to the quantity actually bought. B) is equal to total market revenue minus cost. C) does not depend on the quantity sold. D) is the area under the market price and above the marginal cost curve.
If the quantity demanded of a public good is greater than the quantity supplied,
a. an excess quantity demanded emerges, which could be eliminated (corrected) by the government decreasing taxes to allow people to buy more of the good b. it is proof that market failure exists c. it is proof that government failure exists d. an excess quantity demanded emerges, which could be eliminated (corrected) by the government increasing taxes to provide more of the good e. the market will create the supply to bring the market for the public good into equilibrium
If the public takes funds from currency in circulation and deposits them into their checking accounts, the:
a. Monetary base and M2 money multiplier rise. b. Monetary base and M2 money multiplier fall. c. Monetary base and M2 money multiplier do not change. d. Monetary base falls, and M2 money multiplier rises. e. Monetary base does not change, and M2 money multiplier rises.