Which one of the following would count as investment in the national income accounts?
a. buying a U.S. government bond
b. buying 100 shares of Wal-Mart stock
c. buying an existing house
d. a freight-hauling firm buying a new domestically produced truck
D
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During the mid 1980s the price of gasoline fell. Americans purchased not only more gasoline but other goods as well. Use consumer theory to explain why this happened
What will be an ideal response?
If a country imposes a tariff on all imports, then you would expect to see:
a. an increase in this country's current account surplus. d. an increase in this country's foreign lending. c. in increase in this country's exchange rate. d. a and b. e. all of the above.
When insurance companies offer fair insurance,
A) risk-averse agents always purchase it. B) risk-neutral agents never purchase it. C) risk-loving agents always purchase it. D) nobody would purchase fair insurance.
Which of the following situations will arise in the domestic market following the imposition of an import ban?
A. imports increase, domestic production increases, prices increase B. imports increase, domestic production decreases, prices decrease C. imports decrease, domestic production increases, prices increase D. imports decrease, domestic production increases, prices decrease