Which of the following illustrates how the investment accelerator works?
a. An increase in government expenditures increases aggregate spending so that SnoozeBargain Co. decides to modernize its motels.
b. An increase in government expenditures increases the interest rate so that SnoozeBargain Co. decides to modernize its motels.
c. An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by SnoozeBargain Co. rises.
d. An increase in government expenditures decreases the interest rate so that SnoozeBargain Co. decides to modernize its motels.
a
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Karl Marx was critical of markets on the grounds that they are not efficient.
Answer the following statement true (T) or false (F)
A sum of $10,000 is deposited in a bank. Consider two situations: the bank offers an annual rate of interest of 10% and the bank offers an annual rate of interest of 15%. Compare the time value of money generated in both cases after:
a) one year. b) five years.
According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the lowest level of income equality?
A) Portugal B) United States C) Norway D) Russia
Which one of the following statements is true?
A. Money flows from households to firms for resources. B. Money flows from households to foreign economies for exports. C. Money flows from government to firms for resources. D. Money flows from firms to households for resources.