In the short run with fixed prices, an increase in investment of $100 billion...
a) increases real GDP by $100 billion
b) increases real GDP by less than $100 billion
c) increases real GDP by more than $100 billion
d) decreases real GDP by $100 billion because of the decrease in induced expenditures
c) increases real GDP by more than $100 billion
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Governments should provide nonrival, nonexcludable goods only if the social benefits of the goods outweigh the cost of producing those goods
Indicate whether the statement is true or false
By providing and communicating information, the financial system
A) reduces the difference between the return on three-month U.S. Treasury bills and the return on thirty-year U.S. Treasury bonds. B) relieves individual savers from the necessity of searching out individual borrowers. C) eliminates the risk in investing in the stock market. D) guarantees investors a reasonable return on their money.
If the interest rates rise, the present values of future dollars will _______.
Fill in the blank(s) with the appropriate word(s).
A nonrenewable resource:
A. can be replenished naturally over time. B. is used to regenerate an old piece of capital. C. is a production input that comes from the earth. D. All of these statements are true.