Autonomous real investment spending is
A. the level of investment expenditure required to keep the economy expanding at its current growth rate.
B. the level of investment expenditure required to replace capital lost to depreciation.
C. the level of investment expenditure that would prevail if interest rates were zero.
D. the level of investment expenditure that is independent of real GDP.
Answer: D
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A) e; c B) d; b C) a; f D) f; a E) a + b + c + d + e; f
Regarding the institutional requirements of efficient markets,
a. Western economic theory ignores the operation of efficient markets b. market economists have an almost perfect understanding c. market economists would never take the necessary institutions for granted d. those involved in a transition from centrally planned economy must develop a deep appreciation e. None of the answers is correct
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a. perfectly horizontal b. perfectly vertical c. upward sloping d. downward sloping e. nonexistent in perfect competition
The gold standard prevented a nation from controlling its domestic economy through monetary policy
a. True b. False Indicate whether the statement is true or false