Costs that are incurred by a business are called ________. Examples include salaries, equipment, travel, rent, and insurance.
a. profit
b. expenses
c. revenue
d. outflow
e. debt
b. expenses
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Which of the following would increase the level of planned real investment?
A) an expectation of higher future profits B) an expectation of higher future costs C) an increase in business taxes D) an increase in the interest rate
If the cross elasticity of demand between good A and good B is negative, then a decrease in the price of good A results in
A) an increase in the demand for good B. B) a decrease in the demand for good B. C) a movement downward along the demand curve for good B. D) an increase in the supply of good B. E) a decrease in the supply of good B.
When economists state that money is neutral in the long run, they mean that in the long run,
A) fluctuations in the money supply are equally likely to lead to recessions as to expansions. B) changes in the money supply have the same impact on the rich as they do on the poor. C) the level of output is independent of the nominal money supply. D) the price level is independent of the nominal money supply.
The number of times per year a dollar is used to transact an exchange is known as
a. liquidity of money b. velocity of money c. quantity theory of money d. equation of exchange e. rapidity index