Spending VCU4 on real-world goods and services causes the nation's:

a. Demand for real goods and services to remain the same and monetary base to fall.
b. Demand for real goods and services to remain the same and M2 money supply to rise.
c. Demand for real goods and services to rise and M2 money multiplier to remain the same.
d. Demand for real goods and services to remain the same and M2 money supply to fall.


.C

Economics

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Suppose the government decides to decrease the amount of investment spending that firms are allowed to depreciate for tax purposes from 50% to 25%, effective next year

What effect should this change have on the desired capital stock and the level of investment spending next year? Use a graph to explain your answer.

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The necessity for choice, in economics, arises from

A. high incomes and many available goods. B. scarcity of economic means for satisfying economic wants. C. limited numbers of producers. D. All of the responses are correct.

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According to John Rawls, a "veil of ignorance" was needed for equitable decisions about appropriate social rules and individual endowments, so no one would know their place in society

Indicate whether the statement is true or false

Economics