Which of the following is a determinant of Investment spending?
A. Real income
B. Expected future income
C. Taxes
D. Wealth
C. Taxes
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Suppose that Country A and Country B each had the same per capita real Gross Domestic Product (GDP) of $10,000 in 2008
Country A's per capital real Gross Domestic Product (GDP) had a growth rate of 3 percent per year and Country B's per capital real Gross Domestic Product (GDP) had a growth rate of 4 percent per year. By 2013, the per-capita real Gross Domestic Product (GDP) for the two countries, respectively, were A) $10,300 and $10,400. B) $11,593 and $12,167. C) $14,000 and $16,000. D) $11,941 and $12,653.
The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to:
A. an increase in the demand for CEOs. B. the comparatively greater competitive markets in Japan. C. the greater number of public goods provided in the United States. D. an increase in the supply of CEOs.
If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50, then
A) a surplus will be created causing the price to fall to the equilibrium price of $4.50. B) a permanent surplus will develop because the government established the minimum price at $5.00. C) a shortage will be created causing the price to rise to the equilibrium price of $4.50. D) a permanent shortage will develop because the government established the minimum price at $5.00.
Refer to the diagram for the federal funds market. If the Fed wants to increase reserves from $200 billion to $300 billion it should:
A. buy bonds from banks and the public.
B. sell bonds to banks and the public.
C. buy bonds from banks and sell them to the public.
D. buy bonds from the public and sell them to banks.