The investment expenditure component of aggregate demand is also known as:
a. money spent in the stock market.
b. spending to repair existing capital goods.
c. spending used to enhance human capital.
d. spending on new capital goods.
d. spending on new capital goods.
You might also like to view...
According to Figure 6.1, the average annual rate of growth of the U.S. economy in the period 1996-2011 equalled ________
A) 0.3 percent B) 2.2 percent C) 30 percent D) 300 percent
Corporate profits are taxed twice because
A) taxes are collected on profits before profits are distributed to shareholders. B) the government wants to minimize the amount of tax paid on capital gains. C) it is economically efficient to reduce the amount of retained earnings. D) capital gains are not indexed to the rate of inflation.
For the equation of exchange to remain in balance
A. changes in P must equal the combined change in M and V. B. changes in P must equal changes in V. C. changes in Q must equal changes in M. D. the equation does not have to balance.
Using the saving/investment approach to equilibrium, the equilibrium condition can be written as
A. C - S = I. B. C = S + I. C. C + S = I. D. C + I = C + S.