According to economists, investment includes:
A. Production of plant and machinery.
B. Purchasing or hiring factors of production.
C. Purchases of corporate stock.
D. Money put into a pension fund
Ans: A. Production of plant and machinery.
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The long-run Phillips curve is a
A) straight line with a 45 degree slope showing the long-run relationship between the inflation rate and the expected inflation rate. B) vertical line that shows the relationship between inflation and unemployment when the economy is at full employment. C) vertical line indicating a positive relationship between inflation and unemployment. D) horizontal line indicating a positive relationship between inflation and unemployment. E) horizontal line that shows the relationship between inflation and unemployment when the economy is at full employment.
Which of the following are motivations for those seeking redistributive transfers?
a. The creation of more income equality. b. To help out those who are less fortunate c. To create a more just economic system. d. a and b e. all of the above
Suppose the reserve requirement is 5 percent. How much would reserves need to be initially increased to eventually increase the money supply by 1,000?
A. 500 B. 250 C. 50 D. 25
What is the primary benefit to the United States of a low price for the dollar in the foreign exchange market?
A. It encourages exports, helping producers. B. It makes foreign goods cheaper, helping consumers. C. There are no benefits to the United States of a low price for the dollar; a higher price is always better. D. It helps keep inflation under control.