If investment spending decreases and all other levels of spending remain constant, then aggregate
A. Supply decreases.
B. Demand increases.
C. Supply increases.
D. Demand decreases.
Answer: D
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Liabilities are:
A. saving minus investment. B. anything of value one owns. C. the debts one owes. D. current income minus spending on current needs.
If inflation in Russia is higher than it is in the United States,
A) the value of the dollar will rise in the long run. B) the purchasing power of the ruble in buying Russian goods will rise relative to the dollar. C) the value of the ruble will rise in the long run. D) Both A and C are correct.
The circular flow model shows the
A) distribution of income and consumption goods across income levels. B) combinations of the factors of production needed to produce goods and services. C) flow of expenditure and incomes that arise from the households', firms', and governments' decisions. D) flow of natural resources from firms to the private market to government and back to firms. E) distribution of income to the different factors of production.
If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is
A) elastic and the elasticity of supply equals 1.5. B) inelastic and the elasticity of supply equals 1.5. C) elastic and the elasticity of supply equals 0.66. D) inelastic and the elasticity of supply equals 0.66. E) either elastic or inelastic, but more information about the elasticity of demand is needed to determine which.