When the Fed lowers the interest rate:
A. investment increases, and net exports decreases.
B. both investment and net exports increase.
C. both investment and net exports decrease.
D. investment decreases, and net exports increase.
B. both investment and net exports increase.
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If Happy Cows, a milk producer, purchases a dairy farm, this is an example of _______
A) backward integration B) forward integration C) divestiture D) outsourcing
You are given the following information on the macroeconomy (in millions dollars):
Consumption: 250 + 0.50Y Investment: 100 + 0.10Y Government Spending 400 Exports 50 Imports 50 + 0.25Y Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for a decrease in autonomous investment of $75 million.
A static decision is one that
A) is made very slowly. B) involves planning over one time period. C) involves planning over exactly two time periods. D) involves planning over more than one time period.
The issuer of a bond promises to make ________ payments at specified times and repay the ________ at some point in the future and the bond's price in the market ________ fluctuate over the life of the bond.
A) interest; principal; can B) principal; interest; cannot C) interest; principal; cannot D) principal; interest; can