Inventories are counted as investment because inventories are a source of future sales.
Indicate whether the statement is true or false.
Ans: True
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Refer to the above table. How long would it take for a country to triple its GDP if the GDP grew at a 20 percent rate?
A. 2 years B. 10 years C. 4 years D. 6 years
Some government bonds can be redeemed for currency or a check at banks. Why, then, isn’t it universally agreed that government bonds are money?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. In the extraction of a nonrenewable resource such as coal, the mining firm faces "user costs" which refer to the cost of digging out the coal, running the mine, and transporting the coal. 2. If resource extraction companies can benefit from both present and future extraction, they will limit current extraction to only those units which are more profitable to extract in the present rather than in the future. 3. Definition of property rights is a key component to proper conservation of resources. 4. In the case of conflict diamonds, the strict enforcement of property rights has lead to too fast of a rate of extraction. 5. The price of harvesting a renewable resource does not affect when or how much of a renewable resource will be harvested.
If the real interest rate increases from 3 percent to 5 percent
A) the nominal interest rate will also increase. B) the demand for loanable funds curve will shift rightward. C) there will be a movement up along the demand for loanable funds curve. D) the supply of loanable funds curve will shift rightward.