Depreciation is
A. the reduction in the value of capital goods due to physical wear and tear.
B. not included in Gross Domestic Product (GDP) from the income side.
C. always higher than the capital consumption allowance.
D. added to Gross Domestic Product (GDP) to reach Net Domestic Product (NDP).
Answer: A
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The difference between the investment demand curve and the investment schedule is that the former shows a(n)
A. direct relationship between investment and interest rate, while the latter shows no correlation between investment and income. B. inverse relationship between investment and income, while the latter shows no correlation between investment and interest rate. C. direct relationship between investment and income, while the latter shows no correlation between investment and interest rate. D. inverse relationship between investment and interest rate, while the latter shows no correlation between investment and income.
One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises,
A) firms produce more goods and services. B) firms produce fewer goods and services. C) people substitute toward more imported goods and services. D) peoples' wealth increases.
If investment becomes more interest-sensitive,
A) monetary policy will have a smaller impact on the equilibrium interest rate. B) monetary policy will have a greater impact on equilibrium income. C) fiscal policy will have a smaller impact on equilibrium income. D) fiscal policy will have a larger impact on the equilibrium interest rate.
Intra-industry trade is the buying and selling of goods within ____________ industry/industries from one country to another.
a. different b. non-competitive c. the same d. multiple