The idea that business firms attempt to maintain a fixed relation between their stock of capital and their expected sales is the basis for the
A) accelerator hypothesis of net investment.
B) permanent-income hypothesis.
C) life cycle hypothesis.
D) adaptive expectations approach.
A
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In the 1980s national savings declined as a percentage of GDP. Assuming that domestic private investment's percentage share has not declined, this situation requires, ceteris paribus,
A) net foreign investment (NX) to decrease. B) net foreign investment (NX) to increase. C) U.S. exports to decrease. D) A and C are both necessary outcomes.
According to published data pertaining to unemployment rates in selected European countries, the natural rate of unemployment
a. has been rising over the past three decades. b. declined sharply over the last three decades. c. has been lower than in the U.S. in the 1990s. d. has not changed much over the past three decades. e. Both a and c
What is one reason consumers might demand a discount for quantity purchases?
A) higher storage costs B) lower marginal cost C) lower marginal benefit D) price gouging
When a consumer wants to compare the price of one product with another, money is primarily functioning as a:
A. unit of account. B. medium of exchange. C. checkable deposit. D. store of value.