Which of the following is not a factor that influences investment spending?
A. Transfer payment policy
B. Business confidence
C. Business expectations
D. Technical change
Answer: A
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Under an emission tax, polluters ________ what price they have to pay to pollute, __________________________ how much pollution will be generated.
A. know; and government knows B. don't know; and government doesn't know C. know; but government doesn't know D. don't know; but government knows
What's the opportunity cost of taking an unfair advantage in a deal?
A. Probably nothing, if the transaction is only taking place once. B. Building a reputation for being untrustworthy if the deal is likely to be repeated. C. Future deals may not occur or may come at a much higher cost. D. All of these statements are true.
If Melanie's marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans,
a. Melanie will not purchase any more jeans. b. Melanie can benefit by purchasing more jeans. c. the opportunity cost of a pair of jeans is lower than the price. d. Melanie will decrease her total utility by purchasing more jeans.
According to the loanable funds model, which of the following events would result in higher interest rates and greater saving?
a. Firms become pessimistic about the future and, as a result, they cut back on their plans to buy new equipment and build new factories. b. The government goes from running a budget deficit to running a budget surplus. c. Congress passes a reform of the tax laws that encourages greater saving. d. Congress passes a reform of the tax laws that encourages greater investment.