Fixed investment is typically ________
A) smaller than inventory investment
B) calculated as the change in holdings of raw materials and finished goods
C) planned spending on equipment, structures, and new residential housing
D) all of the above
E) none of the above
C
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The government wants to increase its spending by $1 billion to stimulate the economy and is counting on the government spending multiplier to hel
A) constructing more low income housing B) a new cruise missile for the military C) expanding the school lunch program D) providing textbooks for college students
Suppose Kelly and Jerry are at an allocation bundle where their MRS are not equal
a. they are an equilibrium. b. there are gains from trade. c. they are happy. d. they are outside the Edgeworth box. e. they are trading.
Which of the following is an example of a buyer?
a. Josh contributes $50 to a charity. b. LDV Inc purchases rubber to make tires. c. Yvette finds someone who wants to purchase her mp3 player. d. Good Works Group asks for a donation to build a hostel.
If incomes fall, then
A) the budget constraint shifts inward. B) the budget constraint shifts out. C) there is no change in the budget constraint. D) there is no relationship between the budget constraint and income.