The investment trade-off:
A. is a reduction in current consumption to pay for the investment in capital intended to increase future production.
B. is why countries don't devote all their resources to capital investment.
C. defines the opportunity cost of capital investment.
D. All of these are true.
D. All of these are true.
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An increase in the amount of money in circulation would cause a
A) shift of the aggregate demand curve to the right. B) shift of the aggregate demand curve to the left. C) movement up the aggregate demand curve. D) movement down the aggregate demand curve.
In the main chorus of the Keynes-Hayek rap lyrics, Keynes states "I want to steer markets" and Hayek replies, "I want them set free.". These statements are referring to
a. the tendency of Keynesians to favor government intervention and central planning and the tendency of Hayekians to favor free markets. b. the tendency of Keynesians to favor restrictive fiscal policy and the tendency of Hayekians to favor expansionary fiscal policy. c. the tendency of Keynesians to favor budget deficits and the tendency of Hayekians to insist on budget surpluses. d. the tendency of Keynesians to favor fiscal policy and of Heyekians to favor monetary policy.
A decrease in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in equilibrium price level. B) increase in equilibrium real GDP and a decrease in equilibrium price level. C) decrease in equilibrium real GDP and an increase in equilibrium price level. D) decrease in equilibrium real GDP and a decrease in equilibrium price level.
Your text mentions several ways that international trade flows are qualitatively different than they were a century ago. Which of the following is NOT one of those ways?
A) Firms' investment spending on capital goods is more important than in the past. B) International trade in raw commodities and agricultural products is more important than it was in the past. C) It is possible to trade some types of services in a way that was not possible in the past. D) Multinational corporations play a bigger role in production than they did in the past.