Which one of the following is TRUE?
A. Negative net investment occurs when exports are less than imports.
B. Negative net investment occurs when imports are less than exports.
C. Our productive capacity declines when net investment is less than zero.
D. Net investment is negative when gross investment is greater than depreciation.
Answer: C
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Suppose that in 2015 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2016 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that
A) Estonia's rate of inflation is higher than Lithuania's. B) Lithuania is a more expensive place to live than Estonia. C) Estonia is a more expensive place to live than Lithuania. D) Lithuania's rate of inflation is higher than Estonia's.
Other things the same, if the Fed increases the quantity of money, the ________ because ________
A) nominal interest rate decreases; the supply of money curve shifts rightward B) nominal interest rate increases; the supply of money curve shifts rightward C) nominal interest rate does not change; only the real interest rate is effected D) nominal interest rate decreases; the supply of money curve shifts leftward E) nominal interest rate increases; the supply of money curve shifts leftward
On the eve of the Civil War, cotton was the major crop in the Old South
Indicate whether the statement is true or false