If the salvage value is positive the net present value of an investment ________ and this ________ the likelihood that managers will undertake the project.
A) decreases; decreases
B) increases; increases
C) increases; decreases
D) decreases; increases
B) increases; increases
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If the government decreases its purchases of goods and services by $12,000 and the MPS is 0.5, GDP and income will eventually decrease by
A) $2,400. B) $6,000. C) $24,000. D) $60,000.
For the recessions in the United States since the 1950s
A) unemployment rises on average about 5 percentage points during the 12 months after a recession begins. B) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. C) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins. D) cyclical unemployment has been non-existent.
What best describes the changes in steel production from 1860-1910?
a. The open-hearth process quickly became the dominant production process after it was invented. b. Technological change in steel production changed relatively slowly. c. No technological changes occurred in the steel industry. d. The production of steel stayed constant through this period, but it became much more efficient.
What would likely have the most severe immediate effect on an economy?
A. A significant drop in exports B. The Fed's infusing reserves into the economy C. A failure of the financial sector D. An aggregate demand shock