If gross investment in 2016 is $750 billion and depreciation in 2016 is $850 billion, net investment in 2016 is
A. -$50 billion.
B. -$100 billion.
C. -$800 billion.
D. -$1,600 billion.
Answer: B
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If oil prices fall at the same time that the federal government increases its purchases, in the short run
A) aggregate output and the price level will both increase. B) aggregate output will increase, but the price level will fall. C) aggregate output and the price level will both fall. D) aggregate output will increase, but the price level may either increase or decrease.
Identification fails when there are more included endogenous variables than excluded exogenous variables in the structural equation.
Answer the following statement true (T) or false (F)
If the Fed increases the quantity of reserves, a new equilibrium is reached by a
A) leftward shift of the demand for reserves curve. B) movement down the demand for reserves curve. C) movement up the demand for reserves curve. D) rightward shift of the demand for reserves curve. E) None of the above answers is correct.
The figure above shows the U.S. demand and U.S. supply curves for cherries. Suppose the world price of cherries is $2 per pound. At this price, U.S. consumption of cherries will equal
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.