If private investment of $100 is added to the economy, the equilibrium levels of income and consumption will change in which of the following ways?
A) Increase/Decrease
B) Increase/Increase
C) Increase/No change
D) No change/Increase
E) No change/No change
Ans: B) Increase/Increase
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An increase in the expected inflation rate will ________ the ________ for gold, ________ its price, everything else held constant
A) increase; demand; increasing B) decrease; demand; decreasing C) increase; supply; increasing D) decrease; supply; increasing
The production possibilities curve demonstrate which of the following concepts?
A) scarcity B) choice C) trade-offs D) all of the above
Which of the following statements is TRUE about the price that a monopolist charges?
A) The price is the same as the price that would be charged if there was perfect competition. B) The difference between the price charged by a monopolist and a perfect competitor is due to differences in costs. C) The value that society places on the last unit produced in a monopoly is greater than its cost. D) Too much of the good is being produced in a competitive market and not enough is being produced in a monopoly. Due to the way that prices are set.
Exports are goods and services that are produced:
A. in other countries and consumed domestically. B. domestically and consumed in other countries. C. and consumed in other countries. D. and consumers domestically.