Actual investment is the:
A. spending households engage in based on forecasted budget.
B. amount that firms actually allocate to inventory accumulation.
C. investment a firm makes into stocks and bonds in order to generate profit.
D. amount that firms really allocated to new capital resources and inventory accumulation.
D. amount that firms really allocated to new capital resources and inventory accumulation.
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A supply curve shows the relation between the quantity of a good supplied and
A) income. Usually a supply curve has negative slope. B) income. Usually a supply curve has positive slope. C) the price of the good. Usually a supply curve has negative slope. D) the price of the good. Usually a supply curve has positive slope.
The term “recession” refers to a
a. period of decline in real GDP over two consecutive quarters. b. fall in the general level of real wages over two consecutive quarters. c. fall in the CPI over two consecutive quarters. d. fall in the rate of increase of real per capita GDP.
As interest rates rise, banks seek to decrease their loans and, thereby, shrink the money supply
a. True b. False Indicate whether the statement is true or false
Compared to other investments such as bonds, historically a diverse set of stocks held over a lengthy time period (for example, 30 or 40 years) has yielded a
a. low average real rate of return, and the variation in that return has been extremely high. b. high average real rate of return, and the variation in that return has been relatively small. c. low average real rate of return, and the variation in that return has been relatively small. d. high average real rate of return, and the variation in that return has been extremely high.