Suppose the supply of capital decreases. As a result, the quantity of capital used in production and the rental price of capital will both fall
a. True
b. False
Indicate whether the statement is true or false
False
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What three factors affect the demand for money?
What will be an ideal response?
Which of the following is an output of production?
A) a haircut B) a U.S. savings bond C) a share of Acme Corporation stock D) None of the above.
The international trade of goods within the same industry is called
a. inter-industry trade. b. intra-industry trade. c. splitting up the value chain. c. splitting up the supply chain.
How do critics of discretionary stabilization policy view frequent changes in spending and tax policy?
A. The changes make the economy smoother, although it may not look that way to individual firms. B. The changes make life more difficult and hectic for Congress and the Fed. C. The changes smooth out the business cycle, making planning easier. D. The changes cause more instability in the economy and make planning more difficult.