A decrease in a country's capital stock occurs when ________.
A. businesses sell machinery and equipment to one another
B. the consumption of fixed capital exceeds gross domestic investment
C. the prices of investment goods rise faster than the prices of consumer goods
D. businesses have larger inventories at the end of the year than they had at the start
Answer: B
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Which of the following is not a reason for regulation of U.S. financial markets?
A) Protection of individual investors B) Disclosure of information about securities is the best way to safeguard investors C) Full disclosure broadens investor's participation in the financial markets D) The operation of financial markets requires government regulation if they are to be efficient in channeling funds from savers to borrowers.
Loans by the Federal Reserve to banks are known as
A) repurchase agreements. B) Federal funds. C) discount loans. D) cash items in the process of collection.
The curve in the above graph
A. is a perfectly elastic demand curve.
B. is a perfectly inelastic demand curve.
C. is a very elastic demand curve.
D. is a very inelastic demand curve.
Assuming there is no government or foreign sector, the formula for the multiplier is
A. 1 - MPC. B. 1/(1 + MPC). C. 1/(1 - MPC). D. 1/MPC.