In the aggregate expenditures model, if an economy operates above equilibrium GDP, there will be:
a. unplanned inventory depletion.
b. an increase in GDP.
c. an increase in employment.
d. a decrease in GDP.
d
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Non-redeployable durable assets that are dependent upon unique complementary and perfectly redeployable assets to achieve substantial value-added will typically be organized as
a. an export trading company b. a spot market contract c. a vertically integrated firm d. an on-going relational contract e. a joint stock company.
If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise
a. True b. False Indicate whether the statement is true or false
Which of the following would cause the demand for loanable funds to increase?
a) A reduction in consumer confidence that causes people to save more. b) A new investment tax credit for businesses to expand. c) A major sporting event in town that causes people to withdrawl money from their bank accounts. d) A reduction in government spending.
A mining company has the opportunity to extract from a coal reserve this year for a profit of $40 per pound. The current market rate of interest is 5 percent. The present value of this future extraction is:
A. $36 B. $38 C. $40 D. $42