Real domestic investment spending is
A. negatively related to the level of interest rates in the economy.
B. positively related to government spending.
C. negatively related to the exchange rate.
D. positively related to the marginal propensity to consume.
Answer: A
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Using the above table, the labor force is
A) 380,000. B) 911,000. C) 930,000. D) 569,000.
An increase in government purchases is likely to
a. decrease interest rates. b. reduce money demand. c. crowd out investment spending by business firms. d. All of the above are correct.
Pay-for-performance systems seek to deal with the:
A. Unemployment problem B. Monitoring problem C. Discouraged worker problem D. Principal-agent problem
If the wheat industry is perfectly competitive with a market price of $4 per bushel and Farmer Brown charged $5 per bushel, how many bushels would Farmer Brown sell?
A) some, but fewer than he would at a price of $4 B) more than he would at a price of $4 C) just as many as he would at a price of $4 D) none E) More information is needed about the prices charged by the other wheat farmers.