The larger the marginal propensity to import, the larger the government purchases multiplier
Indicate whether the statement is true or false
FALSE
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The price at which one currency exchanges for another currency is called the
A) foreign exchange rate. B) value of the dollar. C) currency exchange rate. D) net export exchange rate. E) money exchange rate.
The investment rate is the percentage of total output allocated to
A. The production of new plants, equipment, and structures. B. Education and training for the workforce. C. Consumer retirement accounts. D. Saving.
Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 3?
A more rapid rate of technological progress Greater inventories of capital goods Lower expected rates of return on investment in capital goods Higher business taxes on capital goods
Refer to Scenario 9.8 below to answer the question(s) that follow. SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.Refer to Scenario 9.8. Total revenue per week is
A. $6,000. B. $7,200. C. $8,100. D. $9,500.