Which of the following is the largest component of aggregate demand for the U.S. economy?
a) Consumption
b) Net exports
c) Government expenditures
d) Business investment
Answer: a) Consumption
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A sudden expectation of future depreciation of the dollar causes funds to flow __________ the United States and the dollar to actually __________
A) out of; depreciate B) out of; appreciate C) into; depreciate D) into; appreciate
Classical economists believed that if saving were greater than investment, the interest rate would _____, causing saving to _____ and investment to _____ until the two were equal
a. rise; decrease; increase b. fall; decrease; increase c. fall; increase; decrease d. rise; increase; decrease e. fall; increase; increase
The liquidity of money refers to
A. the standard of deferred payments and how quickly those payments can be made. B. how quickly it can be disposed of without high transaction costs. C. the amount of gold it is backed by. D. asymmetric information.
What is the profit-maximizing condition for a firm when trying to decide how much land touse forproduction?
What will be an ideal response?