Refer to Table 11.1. What is the value of the government spending multiplier?
A) 1.67 B) 2.5 C) 3.33 D) 4
B
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One of the primary determinants of planned real investment spending is the
A) rate of real government spending. B) rate of real saving. C) expectation of future profits. D) rate of real consumption spending.
If U.S. imports increase, the sum of the balance of payments accounts (the sum of the current account plus capital and financial account plus official settlements account)
A) becomes negative. B) becomes positive. C) becomes negative or positive depending on the government budget deficit or surplus. D) does not change.
International capital mobility refers to
A) the ease with which manufacturing equipment can be transported across countries. B) the ease with cash may be transferred from one country to another without having to be converted into a foreign currency. C) the ease with which investors move funds among international financial markets. D) the ease with which exchange rates may be adjusted to reflect changes in the relative economic strengths of countries.
Which of the following is most likely to have contributed to better inventory management?
a. Stability in the market demand b. Stability in the average price level c. Perfect forecasting by the firms d. Reduced variability in the input costs e. Improvements in information technology and communication