Over which component of investment do firms have the least amount of control?
A. purchases of new equipment
B. changes in inventories
C. building new machines
D. construction of new factories
Answer: B
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The cumulative total of the federal government's budget deficits has been greater than the total of its surpluses
a. True b. False
It is efficient to reduce pollution to zero.
Answer the following statement true (T) or false (F)
A recent epidemic of mad cow disease caused the government to mandate that thousands of cows be completely destroyed. This will likely cause:
A. the supply of leather shoes to decrease. B. the demand and the supply of leather shoes to increase. C. the demand for leather shoes to increase. D. It will not affect the market for leather shoes.
In a country without foreign trade and income taxes, if the government decreases autonomous spending and autonomous taxes by 50 then total expenditures and output will
A) increase by 50 if the MPC is 1. B) decrease by 50 for any value of the MPS greater than zero. C) decrease by 100 if the MPS is 0.5. D) increase by 200 if the MPS is 0.25.