Which of the following factors will not affect the profit expectations of business firms and change the level of investment?
a. Entry of new firms into the market
b. Introduction of new taxes
c. Announcement of new government subsidies
d. The current level of GDP
e. The marginal propensity to consume
e
You might also like to view...
What would be expected to happen to the size of the underground economy if:
a. businesses tax rates decreased. b. government regulations on businesses increased dramatically. c. the sale and use of marijuana was legalized in all 50 states.
The higher the dollar's exchange rate, the ________ the expected profit from holding dollars and so ________ dollars are supplied
A) larger; more B) larger; fewer C) smaller; more D) smaller; fewer
The external shock that hit Mexico and other Latin American countries in the early 1980s that caused the Lost Decade was a collapse in world oil prices
Indicate whether the statement is true or false
If Billy's reservation price on a snowboard is $250, how many snowboards would he buy if the market price of snowboards is $500?
A. 0 B. 1 C. 2 D. The amount of snowboards purchased would depend on Billy's income.