Gross private domestic investment in the United States consists of three components:
a. stocks, bonds, and mutual funds.
b. automobiles, trucks, and houses.
c. plant, equipment, & software, houses, and inventories.
d. plant, equipment, & software, houses, and net exports.
c
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If the forward exchange rate of the yen in terms of dollars is greater than the spot exchange rate,
A) Japanese interest rates must be higher than U.S. interest rates. B) U.S. interest rates must be higher than Japanese interest rates. C) market participants must be expecting the dollar to appreciate against the yen. D) market participants must be expecting the dollar to depreciate against the yen.
The first labor unions in the United States were
A) public-sector unions. B) industrial unions. C) guilds. D) craft unions.
A company that produces baseball gloves is considering buying some new equipment that it expects will increase future profits. If the interest rate rises, then the present value of these future profits
a. rises. The company is more likely to buy the equipment. b. rises. The company is less likely to buy the equipment. c. falls. The company is more likely to buy the equipment. d. falls. The company is less likely to buy the equipment.
What happened to government expenditures during World War II?
a. They increased. b. They decreased. c. They were suspended. d. They were capped.