The variability of business profits:
A. Helps explain the instability of investments over time
B. Does not affect investment spending, which depends on expected profits not current profits
C. Explains why the durability of capital goods is variable
D. Causes the variations in consumption spending over time
A. Helps explain the instability of investments over time
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Which of the following is an automatic stabilizer?
a. Unemployment insurance b. Government spending c. Net taxes d. The interest rate e. The minimum wage set by the government
According to the text, producing different brands of essentially the same good is called brand
a. multiplication b. duplication c. amplification d. recognition e. loyalty
Suppose that a nation has adopted a fixed exchange rate with another country, and has a persistent trade deficit. What is most likely to happen?
a. a gradual increase in the value of its currency b. a gradual decrease in the value of its currency c. a "run" on its currency and a sudden appreciation d. a "run" on its currency and a sudden devaluation
Currently, college graduates are earning about ____ more than high school grads over the course of their careers.
A. $100,000 B. $1,000,000 C. 25 percent D. 60 percent