The term investment refers, in general, to
A) any action today that has costs today.
B) any action today that has costs today but provides expected benefits in the future.
C) only large projects, such as building a new factory, undertaken by private firms.
D) only the creation of capital goods undertaken by private firms or the government.
B
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The main reason why income per capita and income per worker varies across countries is because ________
A) prices vary across countries B) currencies vary across countries C) productivity varies across countries D) interest rates vary across countries
If an economy experiences deflation, the real interest rate
A) will be greater than the nominal interest rate. B) will be equal to the deflation rate, so long as the nominal interest rate is positive. C) will be negative when the nominal interest rate is positive. D) will be less than the nominal interest rate.
What is meant by the term "long-run competitive equilibrium?
What will be an ideal response?
Which of the following financial assets is most likely to have the chance of a higher rate of return than the others?
A. Stocks B. Bonds C. Mutual funds D. Savings accounts