The following list contains factors that are related to the aggregate demand curve.1)Household expectations 2)Profit expectations 3)Degree of excess capacity 4)Personal income tax rates 5)Exchange rates 6)National income abroad 7)Government spending 8)Household wealth Refer to the above information. Investment spending would most likely be influenced by changes in:
A. 2 and 3.
B. 1 and 8.
C. 5 and 6.
D. 1 and 4.
Answer: A
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For a firm facing a downward sloping demand curve, marginal revenue
A) is at a minimum at the midpoint of the demand curve. B) is greater at higher prices than at lower prices. C) increases each time prices are lowered. D) falls each time prices are raised.
Which of the following constitutional provisions would help promote economic growth and prosperity?
A) the right of individuals and businesses to compete in markets B) protection of private property rights C) the right of citizens to freely engage in exchange with foreigners D) all of the above
The production decision is the:
A.) Selection of the short-run rate of output. B.) Selection of the long-run rate of output. C.) Choice of whether to enter or exit the industry. D.) Choice of factory or plant size.
Taylor has the following assets and liabilities:Two cars$15,000House$400,000Mortgage$300,000Cash$1,000Car loans$5,000Checking account balance$3,000Credit card balance$3,000 Suppose that Taylor receives a $10,000 bonus from her employer. If she puts that money toward her mortgage, her wealth would ________; if she puts that money in her checking account, her wealth would ________.
A. increase to $115,000; increase to $115,000 B. increase to $121,000; increase to $121,000 C. increase to $121,000; decrease to $101,000 D. increase to $115,000; decrease to $95,000