Through its impact on the desired stock of housing, higher expected income would lead to ________
A) an increase in residential investment
B) a decrease in expected house price appreciation
C) a decrease in residential investment
D) a decrease in single-family dwellings
A
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Crops produced entirely for the market are known as
(a) basic crops. (b) mixed crops. (c) hybrid crops. (d) cash crops.
A key difference between recessions and depressions is that recessions are: a. longer than depressions
b. more severe than depressions. c. accompanied by price increases, while depressions are accompanied by price decreases. d. shorter and less severe than depressions. e. accompanied by price decreases, while depressions are accompanied by price increases.
Which of the following provides the strongest evidence that the corporate form of business structure is relatively efficient, particularly when business firms are large?
a. the fact that almost 90 percent of business revenues are generated by corporations b. the fact that individual proprietorships are more numerous than corporations c. the fact that economic theory indicates corporate managers have some leeway to pursue their own interests at the expense of the owners of the firm d. the high salaries of many corporate executives, including some managing firms that are making economic losses
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the nation's:
a. Real risk-free interest rate will remain unchanged, but the money multiplier will rise. b. Real risk-free interest rate will fall causing real GDP to rise. c. Real risk-free interest rate will fall causing the money multiplier to rise. d. Real risk-free interest rate will rise but real GDP will remain the same. e. Real risk-free interest rate will rise causing real GDP to fall.