The investment function tells us, at any given interest rate
A) how many funds people will invest in the stock market.
B) how many funds people will earn on their stock market investments.
C) how profitable it will be for firms to expand.
D) how much businesses will spend on adding to the capital stock.
Answer: D) how much businesses will spend on adding to the capital stock.
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Why would an economist claim that "oil comes out of our minds"?
A) She wants to sound silly. B) She wants to tell lies. C) She wants to remind us that the recognition of useful resources is a product of our mental abilities. D) She wants to sound like a really big and important theorist and could not care less about the facts of the real world.
The primary purpose of the discount window is to
A) influence the nation's money supply. B) fulfill the bank's lender of last resort role. C) control banks' excess reserves. D) influence the amount of loans that banks provide to the public.
A game in which players collectively lose is known as a
A) zero-sum game. B) positive-sum game. C) negative-sum game. D) cooperative game.
Assume that C = $1,500 + 0.80(Y) and intended investment = $500 . Then the equilibrium level of national income is
a. $24,000 b. $20,000 c. $19,000 d. $15,000 e. $10,000