If inflows to the capital stock are greater than outflows, then:
A. Net investment is positive
B. Net investment is negative
C. Depreciation equals gross investment
D. Depreciation is greater than gross investment
A. Net investment is positive
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If aggregate demand grows only slightly faster than potential GDP, then the economy will ________
A) experience economic growth with high inflation B) experience recession C) experience economic growth with low inflation D) be at a business-cycle peak
The price of a coupon bond and the yield to maturity are ________ related; that is, as the yield to maturity ________, the price of the bond ________
A) positively; rises; rises B) negatively; falls; falls C) positively; rises; falls D) negatively; rises; falls
In the market for Canadian dollars measured in US dollars, the supply of US dollars is
a. The supply of Canadian dollars b. The demand for Canadian Dollars c. The demand for US dollars d. None of the above
Wages tend to be "sticky" because:
A. contracts are often negotiated for long terms and cannot be easily changed. B. workers are less likely to work as hard if their pay may be cut due to market performance and not their performance. C. constantly changing wages creates uncertainty and costs the employer a lot of time and energy to change wage rates. D. All of these are possible reasons why wages might be sticky.