According to this Application, if the volatility of energy prices led to expectations of declining real GDP, investment spending at that time would tend to decrease
This relationship between the decrease in investment spending and the expected decline in real GDP would be expressed by the
A) present value theory. B) liquidity principle.
C) accelerator theory. D) real-nominal principle.
C
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Pork can be used to produce bacon or sausage, but not both. If the price of bacon rises for some reason, then, everything else equal,
A. the price of sausage will rise. B. the price of sausage will fall. C. the resources used in raising pork will become more expensive. D. the resources used in raising pork will become less expensive.
Why do economists say that even very rich people face scarcity?
What will be an ideal response?
If a person withdraws $500 from his/her savings account and puts it in his/her checking account, then M1 will ________ and M2 will ________
A) not change; not change B) not change; increase C) increase; not change D) not change; decrease E) increase; decrease
Bonds are a safer form of investment because
a. full bond payments are made before stockholders receive any dividends b. they are guaranteed by the government c. they are guaranteed by the investment industry d. a stockholder's personal assets can be used to pay the bondholder's interest e. bondholders can elect the board of directors