Investment is the expenditure done by
A) savers.
B) firms.
C) the rest of the world.
D) governments.
E) Both answers A and B are correct.
B
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Fundamental analysis shows that stock in Widgets-R-Us has a present value that is lower than its price
a. This stock is overvalued; you should consider adding it to your portfolio. b. This stock is overvalued; you shouldn't consider adding it to your portfolio. c. This stock is undervalued; you should consider adding it to your portfolio. d. This stock is undervalued; you shouldn't consider adding it to your portfolio.
The fiscal policy target for achieving full employment when an inflationary gap exists is known as the
A. AD excess. B. Fiscal restraint. C. AD shortfall. D. Fiscal stimulus.
Productive efficiency refers to long-run market conditions where marginal cost is equal to marginal revenue.
Answer the following statement true (T) or false (F)
A firm's marginal cost curve above the minimum of the average variable cost curve is also:
A. the firm's demand for production curve. B. the firm's producer surplus curve. C. the firm's short-run supply curve. D. the market supply curve.