Planned investment spending is higher
A) when real interest rate is higher.
B) during financial frictions.
C) when businesses are optimistic.
D) all of the above.
E) A and C.
C
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Adjusted gross income is
A. any profit you have from asset sales. B. total income from all sources. C. income after deductions and exemptions are taken. D. the amount of income a taxpayer has after taxes are paid.
Refer to the above table. Suppose both governments offer their respective company a subsidy of $4(million)
What will be an ideal response?
The issue of fairness versus efficiency arises
a. only in a command economy. b. only in a market economy. c. in neither a command nor a market economy. d. in both a command and a market economy.
Assume that a large capital-abundant country trades only two goods with the rest of the world, medical equipment and corn. Medical equipment is relatively capital-intensive. An increase in the country's endowment of capital will cause the price of medical equipment relative to the price of corn to
A. rise at first and then fall. B. fall. C. stay the same. D. rise.