Planned investment expenditures will eventually decrease after:
a. the money supply decreases
b. the demand for money decreases.
c. the interest rate falls.
d. the Fed buys government securities.
e. business managers become more optimistic about future market conditions for their products.
a
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Because a change in consumer spending is positively related to a change in income, the slope of the aggregate demand function is:
a. 0. b. 1. c. equal to the MPC. d. equal to the marginal propensity to save.
An economics textbook is an example of:
A. capital. B. labor. C. a natural resource. D. entrepreneurship.
The total revenue graph consistent with Table 8.1 is
A) linear and upward-sloping. B) linear and horizontal. C) linear and vertical. D) linear and downward-sloping. E) concave downwards.
Historically, the typical price-earnings ratio for stocks is about
a. 3 b. 8 c. 15 d. 26