Purchases of inventories by
A) firms are not counted in investment spending.
B) firms are also counted in investment spending.
C) households are also counted in investment spending.
D) households and Firms are also counted in investment spending.
E) foreign consumers are counter in investment spending.
B
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Assuming that the government can act immediately before the multiplier takes effect, then to offset an increase in investment by $1 billion, government purchases must be:
A. decreased by $2 billion. B. increased by $1 billion. C. decreased by $1 billion. D. decreased by $0.5 billion.
If a corporation pays a dividend, which group receives priority in receiving the dividend?
A) bond holders B) holders of common stock C) holders of preferred stock D) dividends are evenly divided by holders of common and preferred stock
The big-push strategy is thought to be effective in an LDC because it
a. is financed entirely by the private sector b. does not rely on worker skills and technology c. generates ready markets for each project d. requires only short-term planning e. is managed by international investors
Homeowners
a. are subject to double taxation. b. benefit from several loopholes. c. have no particular advantages in the tax system. d. must pay tax on the "income" of living in a house.