The most volatile component of aggregate demand is
a. consumption spending.
b. government spending.
c. investment spending.
d. net exports.
c
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Refer to the scenario above. If the government of India wants to repay a lower sum of money to the U.S., it should:
A) buy both dollars and rupees. B) sell both dollars and rupees. C) buy dollars and sell rupees. D) buy rupees and sell dollars.
Any point on the production possibility frontier is
A) attainable and might be allocatively inefficient. B) attainable and must be allocatively efficient. C) less production efficient than a point in the interior of the PPF. D) always allocatively efficient but might or might not be production efficient. E) always production efficient and always allocatively efficient.
In the long-run equilibrium, a firm's price definitely equals its average total cost in
A) both monopoly and monopolistic competition. B) neither monopoly nor monopolistic competition. C) monopoly but not monopolistic competition. D) monopolistic competition but not monopoly.
Investment, as a part of GDP, includes:
A. spending on productive inputs such as stocks, bonds, and other types of financial instruments. B. any goods that are bought by firms who plan to use those purchases to produce other goods and services in the future, rather than consuming them. C. consumption goods that are purchased by households. D. any item you buy that you are looking for a return on over time.