If corporations have their choice, they will prefer to invest using
a. revenue from the sale of stocks.
b. revenue from the sale of bonds.
c. plowback.
d. money borrowed from the bank.
c
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Downward wage rigidity:
A) leads to frictionless labor markets. B) causes the wage to be above the market clearing wage. C) helps lower unemployment. D) is common only in industries with strong labor unions.
Which of the following describes the relationship between net exports and imports?
a. Net exports = imports + exports b. Net exports = exports - imports c. Net exports = imports - exports d. Imports = net exports - exports e. Imports are not related to net exports
If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by
a. an increase in the supply of the good. b. an increase in the demand for the good. c. a decrease in the demand for the good. d. a decrease in the supply of the good.
? Along the short-run supply curve (SRAS), a decrease in the aggregate demand curve will decrease:
A. ?both the price level and real GDP. B. ?real GDP without raising the price level. C. ?the price level without affecting real GDP. D. ?the price level but reduce real GDP.