________ investment is more volatile than other forms of investment spending because this type of investment can be changed relatively quickly
A) Business fixed
B) Inventory
C) Residential
D) Capital
B
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If average labor productivity increases, then the same number of employed workers will always produce:
A. more output per person. B. less output per person. C. less total output. D. more total output.
Monetarists blame rising government deficits for rising inflation
A) because deficits shift aggregate demand to the right. B) so long as the aggregate supply curve is vertical. C) when financing these deficits involves money creation. D) because the deficits increase the demand for money and thus interest rates.
If the foreign exchange rate is 70 cents for one Swiss franc, then
A) a car that costs 40,000 francs will cost $7,143.00. B) a wine that costs 200 francs will cost $14.00. C) a clock that costs 500 francs will cost $350.00. D) a house that costs 100,000 francs will cost $700,000.00.
Small savers would rather use financial institutions than lend directly to borrowers because:
A. lenders wouldn't want to deal with small savers. B. it allows them to diversify risk. C. the liquidity is lower with financial institutions but the return is higher. D. financial institutions will offer the savers higher interest rates than the savers could obtain directly from borrowers.