Net exports is calculated by:
A. adding total exports and total imports together.
B. subtracting total exports from total imports.
C. subtracting total imports from total exports.
D. None of these is correct.
C. subtracting total imports from total exports.
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What are the four subcategories of investment expenditures?
What will be an ideal response?
The portion of a resource's earnings greater than the amount required to keep the resource in its present use is called:
a. the price of the resource. b. the opportunity cost of the resource. c. economic rent. d. income.
The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is referred to as:
A. Open-market operations. B. Closed-market operations. C. Discounting. D. Expansionary fiscal policy.
If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:
A. 5. B. 0.20. C. 0.80. D. 10.