The Q-theory of investment
A) suggests that a downturn in real GDP will lead to a sharp fall in investment, which leads to further reductions in GDP through the multiplier.
B) emphasizes the role of real interest rates and taxes.
C) emphasizes that current investment spending depends positively on the expected future growth of GDP.
D) links investment spending to stock prices.
D
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If you believe that velocity is constant and that the aggregate supply curve is vertical, then the quantity theory of money would predict that a doubling of the money supply would cause a doubling of
A. nominal output and real output. B. nominal output and no change in real output. C. real output and no change in nominal output. D. the price level and real output.
When jobs are easy to find, wage increases are frequently given, and businesses are doing well, the economy is most likely in a(n):
A. expansion. B. surplus. C. depression. D. recession.
Even though participants in the economy are motivated by self-interest, the "invisible hand" of the marketplace guides this self-interest into promoting general economic well-being
a. True b. False Indicate whether the statement is true or false
If substantial up-front investments in advertising campaigns become essential to a successful market entry, the market is most likely to be:
A. a perfectly competitive market. B. a monopoly. C. a monopolistically competitive market. D. an oligopoly.