Which one of the following statements is TRUE?
A) Over the years, real consumption spending has been more volatile than real investment spending.
B) In the Keynesian model, changes in the volume of real investment spending are fully explained by changes in the real interest rate.
C) Domestic real investment in the United States was highest during the Great Depression.
D) Over the years, real investment spending has been more volatile than real consumption spending.
D
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Which of the following is an automatic stabilizer that moves the federal budget toward deficit during an economic contraction and toward surplus during an economic expansion?
a. Personal income tax revenues. b. Corporate income tax revenues. c. Unemployment benefits. d. All of these.
Which of the following examples comes closest to a perfectly competitive market?
a. medical equipment producers b. cleaning supplies manufacturers c. agricultural commodities market d. furniture suppliers
Given: M = 800, V = 6, P = 4, and Q = 1,200. According to the crude quantity theory of money, if M rises to 1,000, how much would V, P, and Q be?
What will be an ideal response?
The primary emphasis in macroeconomics is on:
A) how firms set prices. B) aggregates in the economy. C) marginal analysis and normative economics. D) international trade and environmental economics.