Actual investment equals
A. Planned investment minus undesired investment.
B. Desired investment minus undesired investment.
C. Desired investment plus planned investment.
D. Desired investment plus undesired investment.
Answer: D
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If the price level in the current year is much higher than the expected price level, _____
a. firms will increase production beyond the economy's potential level b. the unemployment rate will increase c. firms will decrease production below the economy's potential level d. the short-run aggregate supply curve will become steeper e. the unemployment rate will fall to zero
Andre’s country is democratic, which means that it ______.
a. has lower than average population growth b. can grow its economy even without abundant natural resources c. could be wealthier or poorer than the overall world average d. usually enacts policies that are favorable to economic growth
Suppose the price of one euro is fixed at $1.00. A Dutch oil company discovers new oil reserves in the North Sea and offers the oil for sale. What is the impact on the foreign exchange market?
a. The dollar price of euros decreases from $1.50 to $1.00.
b. Decreasing demand for European goods shifts D2 to D1.
c. U.S. consumers demand more European goods shifting D1 to D2.
d. The quantity of euros demanded changes from Q2 to Q1.
Which statement is true?
A. The federal personal income tax is a proportional tax. B. The cigarette tax is an excise tax. C. The tax on gasoline is a direct tax. D. None of these statements are true.