If investment spending depends on GDP, this is called induced investment
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the above figure. Which panels represent long run equilibrium for the perfectly competitive firm and monopolistic competitive firm, respectively?
A) Panel C and Panel A B) Panel C and Panel B C) Panel B and Panel C D) Panel C and Panel D
When a tax is placed on the sellers of cell phones, the size of the cell phone market
a. and the effective price received by sellers both increase. b. increases, but the effective price received by sellers decreases. c. decreases, but the effective price received by sellers increases. d. and the effective price received by sellers both decrease.
Discretionary fiscal policy by the federal government involves
A. legislative variations in spending and tax policies. B. using built-in stabilizers to smooth economic activity. C. relying on wage and price controls to ensure price level stability. D. presidential variations in spending and taxes without Congressional approval.
A 10 percent rise in the price of housing reduces the quantity demanded of housing by 3 percent. We can conclude that the demand for housing is:
A. inelastic. B. elastic. C. unitary elastic. D. perfectly elastic.