Which one of the following is an example of an economic investment?
A. Putting money in a bank CD
B. Buying a corporate bond or stock
C. Purchasing shares of a mutual fund
D. Building a new bank office
D. Building a new bank office
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Refer to Figure 9.2. A movement from point c to point b could be caused by a simultaneous ________ and ________
A) decrease in government spending; decrease in the price of oil B) increase in government spending; increase in the money supply C) increase in taxes; decrease in government spending D) decrease in taxes; increase in the price of oil
Inflation tends to ________ during a business cycle expansion and ________ during a business cycle recession
A) increase; decrease B) decrease; increase C) increase; increase further D) decrease; decrease further
The chief economist of the country of Elbonia has predicted that the new policies adopted by the government will lead to higher economic growth accompanied by lower rates of inflation. The currency of Elbonia is expected to: a. weaken
b. appreciate. c. depreciate. d. devaluate.
In the IS-LM model, a decrease in government purchases leads to a(n) ______ in planned expenditures, a(n) ______ in total income, a(n) ______ in money demand, and a(n) ______ in the equilibrium interest rate.
Fill in the blank(s) with the appropriate word(s).