If a firm pays for investment spending out of retained earnings:
A. the firm forgoes interest it could have received.
B. current profits are adjusted downward.
C. past profits are adjusted downward.
D. the interest rate is irrelevant.
A. the firm forgoes interest it could have received.
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Items bought by individuals to provide personal enjoyment are termed
A) consumption goods. B) personal goods. C) consumption or investment goods. D) standard goods. E) pleasure goods.
If the price of orchids falls, the substitution effect due to the price change will cause
A) an increase in the quantity of orchids demanded. B) an increase in the demand for roses, a substitute for orchids. C) an increase in the quantity of orchids supplied. D) an increase in the demand for orchids.
What happens to each of the following if the supply of loanable funds shifts left? A. the interest rate B. net capital outflow C. the exchange rate
If the United States' unemployment rate is 5% and the capacity utilization rate is 85-90%, then the economy is at ___________.
Fill in the blank(s) with the appropriate word(s).