Which of the following is the best description of the effect of firms’ perceptions of the future on planned investment?
a. It is chaotic and hard to analyze.
b. It has an inverse relationship.
c. It has no relationship.
d. It compounds over time.
d. It compounds over time.
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What is the formula for the government budget deficit? Why might it be appropriate for most governments, most of the time, to have a deficit (rather than surplus)?
What will be an ideal response?
Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy. b. earn "good will" from the World Bank. c. prevent chronic surpluses from driving down domestic prices. d. acquire other things that they want to consume. e. reduce the size of their foreign trade deficit.
What is the main purpose of the Federal Reserve System? How does it fulfill this purpose?
The aggregate production function is _____ because the rate of increase of output per capita diminishes as more capital is used
a. downward sloping b. convex from below c. concave from below d. inverted U-shaped