The theory of investment that emphasizes the role of expected growth in real GDP on investment spending is known as
A) the theory of animal spirits. B) the accelerator theory.
C) real business cycle theory. D) the multiplier theory.
B
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The slope of a line with rise of five and run of two is positive.
Answer the following statement true (T) or false (F)
Based on this production possibilities curve, what is the highest grade that can be earned in either class?
a. 100%
b. 95%
c. 85%
d. 75%
Compared to the long-run absolute elasticity of demand, the short-run absolute elasticity of demand is
A) smaller. B) the same. C) larger. D) either smaller or larger, depending on other factors.
Firms in a monopolistically competitive market will advertise because
A. of the significant differences in their product over their competitors. B. the elasticity for their product is inelastic. C. they want to differentiate their products. D. they want to increase the elasticity of the demand curve.