Comment on the following statement: "In economics, investment means a wide variety of things including purchases of stocks, bonds, and other financial assets."

What will be an ideal response?


The statement is false. In economics, investment refers only to an increase in capital. Purchasing stocks or bonds is a form of saving.

Economics

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Keynesian and classical theories agree that:

a. AS is upward sloping in the short-run. b. AS is vertical in the long-run. c. sustained AD shocks can also shift AS in the long-run. d. all of the above.

Economics

A ray through the origin always has a slope of one.

Answer the following statement true (T) or false (F)

Economics

Political instability is an obstacle to development in:

A. both market and socialist economies. B. neither market nor socialist economies. C. market economies. D. socialist economies.

Economics

A short-run appreciation of the British pound would be consistent with:

a. a temporary fall in the British money supply. b. a temporary fall in the European money supply. c. a temporary rise in the European money supply. d. either a temporary fall in the British money supply or a temporary rise in the European money supply.

Economics