If depreciation is less than gross investment, then net investment is
A) positive.
B) negative.
C) zero.
D) This situation could never occur because it is impossible for depreciation to be less than gross investment.
A
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By fixing its exchange rate, China is most likely
A) achieving a low inflation rate by anchoring to the U.S. inflation rate. B) keeping its export prices low. C) making it easier to compete in world markets. D) Both B and C.
Which of the following is a normative statement?
A. College tuition rates are rising. B. Twenty-eight percent of U.S. adults have a bachelor's degree. C. The average income of a college graduate exceeds that of the average high school graduate. D. State governments should pay for the first two years of college at public institutions.
Intense competition in a market will generally lead to
A) dissatisfaction of consumers about the quality and availability of the product. B) high prices and low quality of the product or service. C) improvements in the quality of the good or service available to consumers. D) production inefficiencies and higher costs.
Which of the following is true for a "closed economy"?
A) government spending equals taxes B) there are no imports or exports C) exports equal imports D) there is no saving E) there is no government spending or taxes