According to the simple circular flow concept, whenever planned investment is less than planned saving
a. inventories accumulate.
b. output increases.
c. prices rise.
d. employment increases.
a. inventories accumulate.
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A venture capital firm provides which of the following?
a. financial capital to firms that are already successful b. financial capital to bankrupt firms in need of help c. financial capital to ideas that have the potential to be very successful d. financial capital to medium size firms to stay in business
Compared to the situation prior to 1980, the top marginal personal income tax rate imposed on the rich is now substantially
a. lower and so is the share of the revenue collected from them. b. higher and so is the share of the revenue collected from them. c. lower, but the share of the revenue collected from them is now higher. d. higher, but the share of the revenue collected from them is now lower.
The simple quantity theory of money predicts that an increase in M of 5 percent will lead to
A) an increase in P of 5 percent. B) an increase in P of less than 5 percent. C) an increase in P of more than 5 percent. D) a decrease in P of 5 percent. E) a decrease in P of more than 5 percent.
The population of tuna in the Pacific Ocean unexpectedly soars so it becomes easier to catch tuna. Which of the following would most likely happen first?
a. The price of tuna would remain constant. b. The price for tuna would increase c. The supply of tuna would increase. d. The demand for tuna would increase.