When we assume that investment is autonomous we imply that:
a. it is a fixed constant amount.
b. it is independent of current real GDP.
c. it is a positive function of interest rates.
d. it is actually zero.
e. it has no impact on consumption.
b
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For a firm in monopolistic competition, the marginal cost curve intersects the average total cost curve
A) at the minimum average total cost. B) to the left of the minimum average total cost. C) to the right of the minimum average total cost. D) at no point.
The purpose of the Basel Committee was to
A) achieve a better coordination of the surveillance exercised by national authorities over the international banking system. B) achieve a better coordination of domestic banking systems. C) achieve a better coordination between brokers and investment bankers. D) achieve a better coordination between bond holder and bon issuers. E) manipulate bank rates for more leverage profits.
The main difference between GDP and GNP is that GNP excludes: a. net income of foreigners
b. consumption of fixed capital. c. transfer payments. d. government purchases.
Which of the following is a normative economic statement?
a. If we doubled the size of welfare payments, we would reduce the number of homeless persons. b. Companies should be concerned with more than just their profits. c. An increase in spending on airport security will reduce the number of hijackings. d. If social security were to be privatized, workers would earn a higher rate of return on their retirement contributions.