If the economic growth rate SLOWS from 5% to 1%, the simple accelerator hypothesis suggests that
A) investment will continue to rise as output increases.
B) investment will fall as output increases.
C) investment will accelerate since output growth is positive.
D) None of the above is correct.
B
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According to Keynes, the most important determinant of an individual's real saving is
A) interest rates. B) the foreign exchange rate. C) the individual's real disposable income. D) the level of investment.
A college professor berates his political science students for being uninformed on current political and government issues. For example, most of them do not know who represents them in the U.S. House of Representatives. He tells his students that they will never get very far in life by staying so uninformed and uninterested. The professor is probably overlooking the fact that
A) people are uninformed and uninterested in only some things-not all things. B) his students could be choosing rational ignorance. C) by not taking out time to find out certain things, his students have more time to study for his tests. D) a, b, and c E) none of the above
Which of the following statements is true?
A. A vertical merger is a merger of firms that compete in the same market. B. The rule of reason doctrine declares that the existence of monopoly alone is illegal. C. Government regulation is economically justifiable for a natural monopoly. D. Deficient information on unsafe products causes underconsumption.
In the above figure, what is autonomous consumption?
A. $2.0 trillion B. $1.0 trillion C. $0.0 trillion D. $3.0 trillion