John Maynard Keynes concluded that investment spending is not determined by
A. business confidence.
B. government incentives.
C. psychological perceptions about the economy.
D. economic expectations.
Answer: B
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Which of the following is an example of foreign portfolio investment?
A) the purchase of a U.S. mutual fund by a U.S. citizen B) the purchase of a Japanese factory by a Korean citizen C) the purchase of a U.S. stock by a U.S. citizen D) the purchase of a U.S. Treasury bond by a German citizen
You are given the following risky cash flows and certainty equivalent factors for a four-year project:
Certainty Period Cash Flow Equivalent Factor 1 $2,500 .95 2 3,000 .92 3 4,000 .88 4 3,000 .84 The initial investment for this project is $8,000, and the risk-free interest rate is 6%. Calculate the net present value of the project.
Which category of unemployed individuals makes up the greatest share of those who are unemployed?
A) new entrants B) reentrants C) job losers D) job leavers
Suppose the nominal interest rate is 4 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 5 percent. At the end of the year, you have earned:
A. a real rate of return of 1 percent. B. an increase in your purchasing power. C. a nominal increase in your savings of $40. D. All of these statements are true.