In the simple accelerator theory an increase in expected sales will
A) lead to an increase in net investment.
B) not necessarily lead to an increase in net investment.
C) lead to an immediate increase in replacement investment.
D) lead to an increase in net investment in the following period.
B
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A bank's largest liability is its
A) shareholder equity. B) long-term debt. C) short-term borrowing. D) deposits of its customers.
The _________ money supply includes less liquid forms of money such as time deposits, certificates of deposit, and money market funds.
a. M2 b. M1 c. M3 d. real
If the production of a good generates a positive externality, then:
A. there will be deadweight loss at the market equilibrium quantity. B. production of the good is harmful. C. total economic surplus will be maximized at the market equilibrium quantity. D. the government should tax producers of the good.
Refer to the information provided in Table 22.3 below to answer the question(s) that follow. Table 22.3
Refer to Table 22.3. The unemployment rate is
A. 2.8%. B. 5%. C. 5.3%. D. 7.2%.