A normal variable is standardized by:
A. subtracting off its mean from it and multiplying by its standard deviation.
B. adding its mean to it and multiplying by its standard deviation.
C. subtracting off its mean from it and dividing by its standard deviation.
D. adding its mean to it and dividing by its standard deviation.
Answer: C
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Other things constant, a reduction in the real interest rate will
a. cause consumers to cut back on their purchases of durable items like automobiles. b. induce businesses to increase their level of investment. c. increase the natural rate of unemployment. d. increase the actual rate of unemployment.
Consumption expenditure decreases when ________ decreases.
A. The interest rate B. The price level C. Disposable income D. Saving
In a closed economy with output fixed, an increase in government spending matched by an equal increase in taxes will:
A. increase consumption. B. increase the interest rate. C. increase investment. D. leave all other variables unchanged.
Historically, U.S. firms have shown less of a preference for foreign direct investment and management control than have firms from other investing countries.
Answer the following statement true (T) or false (F)