All of the following are true except
A. gross investment minus depreciation equals net investment.
B. Karl Marx said that capital is produced by the capitalist.
C. inventory investment is less stable than investment in plant and equipment.
D. capital can be acquired by borrowing, working more or consuming less.
B. Karl Marx said that capital is produced by the capitalist. (It is produced by the worker.)
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Suppose the desired reserve ratio is 10 percent. If Urban Bank has total deposits of $1000 and total assets of $10,000, the amount of desired reserves is
A) $9,000. B) $900. C) $100. D) $1,000. E) $1,100.
The minimum wage is an example of
A) a subsidy for low-skilled workers. B) a price floor. C) a black market. D) a price ceiling.
When persons underestimate inflation (when actual inflation exceeds the expected rate), actual unemployment will
a. exceed the natural rate of unemployment. b. equal the natural rate of unemployment. c. fall below the natural rate of unemployment. d. increase if the government is running a budget deficit and decrease if a budget surplus is present.
The long-run effect of rent control on an area includes
A. less investment into the real estate market in the area. B. many new luxury apartments new luxury apartments will be built. C. rampant building of new low-income housing. D. new investors into the real estate market in the area.