This national income accounting rule guarantees that total product exactly equals total expenditure on that product:
A) changes in inventories count as expenditures.
B) changes in inventories do not count as expenditures.
C) depreciation of capital is subtracted from investment.
D) total product is the sum of values added.
A
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Decrease in government spending will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
Forcing businesses to divert profits to improve job conditions, increase wages and salaries and broaden benefits fuels animosity toward labor unions
Indicate whether the statement is true or false
A horizontal merger is one in which the merging firms:
a. are about the same size. b. produce the same good in the same industry. c. will control greater than 50 percent of the market. d. have never directly competed in the past. e. will pay twice as much in taxes.
What interest rate does a bank pay when it borrows reserves from the Fed?
a. The discount rate. b. The prime rate. c. The federal funds rate. d. The required reserve rate.