Answer the next question based on the following list of factors that are related to the aggregate demand curve. 1) Real-Balances Effect2) Household Expectations3) Interest-Rate Effect4) Personal Income Tax Rates5) Profit Expectations6) National Income Abroad7) Government Spending8) Foreign Purchases Effect9) Exchange Rates10) Degree of Excess CapacityInvestment spending would most likely be influenced by changes in
A. 5 and 10
B. 1 and 3
C. 4 and 5
D. 8 and 9
Answer: A
You might also like to view...
Sherri lives in Canada and is considering buying a new sofa. If the price level in Canada falls and the price level in the United States does not change, Canadian manufactured sofas are relatively
A) less expensive, so Sherri will likely purchase a U.S. manufactured sofa. B) less expensive, so Sherri will likely purchase a Canadian manufactured sofa. C) more expensive, so Sherri will likely purchase a U.S. manufactured sofa. D) more expensive, so Sherri will likely purchase a Canadian manufactured sofa. E) Both answers B and D could be correct depending on whether U.S. manufactured sofas were initially more expensive or less expensive than Canadian sofas.
All of the following are characteristics of a perfectly competitive market except:
A) a large number of sellers. B) perfectly elastic demand. C) a homogeneous product. D) barriers to entry.
According to Say's law,
A) if there is demand for a good, someone will supply it. B) production creates demand sufficient to purchase all goods and services produced. C) supply and demand work together to determine price. D) trading takes longer in a barter economy than in a money economy. E) none of the above
Which of the following characteristics of the monopolistically competitive and the perfectly competitive market will cause the firm to earn zero profits in the long run?
A. no barriers to entry B. many buyers C. price taker D. homogeneous product