One of the primary determinants of planned real investment spending is the
A. rate of real saving.
B. rate of real consumption spending.
C. rate of real government spending.
D. firm expectation of future business profits.
Answer: D
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Markets for pollution rights:
a. have never been tried in the United States. b. assign property rights to those who value them least. c. allow the government to assign property rights. d. enable those who value them most to pollute.
If wage rates fall at the same time that labor productivity increases, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS falls. B) SRAS remains constant. C) SRAS rises. D) SRAS may rise, fall, or remain constant.
U.S. baby boomers are beginning to retire and withdraw their savings for retirement. What effect should we expect this to have on equilibrium price and quantity of financial assets?
A. Price rises and quantity also rises. B. Price falls and quantity also falls. C. Price rises and quantity falls. D. Price falls and quantity rises.
National health care programs are not as effective as they could be because:
A. public health care clinics often run out of important drugs. B. health care providers tend to have a low absentee rate. C. many doctors in clinics do not have sufficient knowledge to properly diagnose patients. D. doctors rarely diagnose below their knowledge frontier.