When investors reduce their investment spending, it is a sign that they are ________ about the economy
A) taking risks B) ill-advised C) optimistic D) pessimistic
D
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The purpose of fiscal policy should be to
a. balance the budget to be fiscally responsible. b. balance aggregate supply and aggregate demand. c. keep taxes low to keep voters happy. d. minimize government spending to avoid wasting money.
Occupations X and Y employ persons with the same productivity. Workers in the two occupations work the same number of hours per day when on the job. Employment is stable throughout the year in X, while Y is characterized by seasonal layoffs. How will the hourly wage rate and annual earnings compare in the two occupations?
a. The hourly wage rate will be higher in X, but the annual earnings will be higher for Y. b. Both the hourly wage rate and annual earnings will be higher in X. c. Both the hourly wage rate and annual earnings will be higher in Y. d. The hourly wage rate will be higher in Y, but the annual earnings will likely be higher for X.
Suppose the national government increased taxes by $20 billion. The net effect on the banking system would be to:
a. Reduce bank reserves by $20 billion and reduce bank deposits by $20 billion. b. Increase bank reserves by $20 billion and increase bank deposits by $20 billion. c. Increase government checking accounts in the banking system by $20 billion and reduce the public's checking accounts there by $20 billion. d. Decrease government checking accounts in the banking system by $20 billion and increase the public's checking accounts there by $20 billion. e. Increase government checking accounts in the banking system by $20 billion and increase the public's checking accounts there by $20 billion.
A reduction in the required reserve ratio would cause the interest rates to
A. increase only if the level of investment is low relative to historic levels. B. decrease. C. increase. D. increase only if the level of unemployment is high.