During 2013, a country's total purchases of newly produced capital goods are $1,000 billion, the country issues $750 billion of stock certificates, and there is $200 billion of depreciation. Net investment in this country equals
A) $550 billion.
B) $1,000 billion.
C) $1,550 billion.
D) $1,750 billion.
E) $800 billion.
E
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"If the marginal tax rate is high enough, the expenditure multiplier can be negative." Is the previous statement correct or incorrect?
What will be an ideal response?
What is a primary difference between rebates and coupons?
A) Coupons allow individuals to sort themselves into the high-elasticity group after the sale. B) Neither coupons nor rebates are redeemed in high numbers. C) Rebates allow individuals to sort themselves into the high-elasticity group after the sale. D) Coupons are legal and rebates are illegal.
The quantity theory of money can be written as
A. M/V = PY. B. MP = VP. C. MV = PY. D. MV = P/Y.
Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. Which of the following statements characterizes an output level of $800 billion?
A. It can be achieved only if investment is independent of the interest rate. B. It is attainable in the short run but it is associated with increases in the price level. C. It is sustainable over the long run without inflation. D. It is achievable only in the long run.