Disinvestment occurs when:
A. Businesses sell machinery and equipment to one another
B. The prices of investment goods rise faster than the prices of consumer goods
C. Businesses have larger inventories at the end of the year than they had at the start
D. The consumption of private fixed capital exceeds gross private domestic investment
D. The consumption of private fixed capital exceeds gross private domestic investment
You might also like to view...
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement ________ the demand for reserves, lowering the federal funds interest rate,
everything else held constant. A) rise; decreases B) rise; increases C) decline; increases D) decline; decreases
Which of these government financing methods is generally the least inflationary?
A) Printing currency B) Borrowing from the banking system C) Borrowing from the central bank D) Borrowing from the non-bank public
If a British student pays her way to attend Harvard University, her actions will: a. create a supply of dollars and a demand for pounds in the foreign currency market. b. create a supply of pounds and a demand for dollars in the foreign currency market. c. cause the British pound to appreciate
d. cause the U.S. dollar to depreciate.
Which of the following statements is correct?
a. The demand for capital is derived from the demands for outputs. b. The demands for output are derived from the demand for capital. c. The demand for capital is derived from the demand for rent. d. The demand for rent is derived from the demand for capital.