For monetary policy to be effective in changing planned investment spending, _____
Fill in the blank(s) with the appropriate word(s).
investment must be sensitive to changes in interest rates.
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When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing
i. seasonal unemployment. ii. structural unemployment. iii. cyclical unemployment. A) i and iii B) ii and iii C) ii only D) i and ii E) i only
Which of the following statements is true of the U.S.?
A) There is more value in trade between states in the U.S. than its international trade. B) The U.S. has always been a net exporter of goods and services. C) The U.S. exports more crude oil than it imports. D) The level of imports of the U.S. has dramatically decreased since 1960.
Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is aggregate expenditure?
A) $15 million B) $23 million C) $25 million D) $27 million
Refer to the above figure. Suppose that Cheerios and Apple Jacks are substitutes. Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has decreased?
A) A B) B C) neither graph D) both graphs