The phrase “capital formation” is synonymous with
A. investment spending.
B. buying shares of stock.
C. creating mutual funds.
D. purchasing financial assets.
Answer: A
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If tastes for a good increased and the price of a substitute good increased at the same time, as a result: a. prices would rise
b. prices would fall. c. larger quantities to be exchanged. d. Both a. and c. would occur.
Commercial banks in the United States can be chartered
a. by state governments and the federal government b. only by state governments c. only by the federal government d. only by the nationally chartered bank in Washington, D.C. e. only by the Federal Reserve
The CPI in November 2015 was equal to 237.3, and in 2016 it was equal to 241.4. This means that the inflation rate between November 2015 and November 2016 was equal to
A. 1.02 percent. B. 1.7 percent. C. 4.1 percent. D. 0.41 percent.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C