Domestic _________ will always appear as part of the supply of financial capital.
a. receipts
b. spending
c. savings
d. production
c. savings
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The main idea behind supply-side tax cuts is that
a. tax cuts increase spending, which increases aggregate supply. b. some tax cuts can increase aggregate supply. c. people like lower taxes and will spend more if they get them. d. it is easier to shift aggregate supply than aggregate demand.
According to Tobin’s q theory of investment,
a) when the stock market undervalues a company, the company should invest in capital expansion b) when a firm’s bond prices rise, the firm should sell off existing assets c) borrowing funds by issuing bonds is always a less expensive way than issuing stock to raise funds for investment d) a firm should buy capital when its stock market valuation exceeds the replacement cost of capital e) firms should invest at a constant rate each month, a practice known as dollar-cost averaging
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the total economic surplus from this transaction was:
A. $195 B. $30 C. $215 D. $185
A decrease in the required reserve ratio
A. will increase the money supply. B. will not change the money supply. C. will decrease the money supply. D. will decrease the discount rate.