During a typical recession in the United States,
A) investment expenditures usually decrease at the same rate as consumption expenditures.
B) investment expenditures usually decrease, while consumption expenditures usually increase.
C) investment expenditures usually decrease much more than consumption expenditures.
D) investment expenditures usually decrease less than consumption expenditures.
C
You might also like to view...
Banks that wish to borrow required reserves can turn to the federal funds market
a. True b. False Indicate whether the statement is true or false
Gross domestic product is defined as the ____________ value of all final goods and services produced in a nation in a year.
a. past b. future c. current d. historical
If every worker earns the same wage rate, then
a. MPP = MRP for all workers b. the firm cannot earn a profit c. every worker except for the last hired generates an MRP equal to the wage rate d. only the last worker hired generates an MRP equal to the wage rate e. all workers hired generate an MRP equal to the wage rate
In general, one of the results of free trade is that the owners of domestically:
A. abundant factors of production win from decreased demand. B. abundant factors of production lose from increased demand. C. scarce factors of production lose due to increased competition. D. scarce factors of production win due to increased consumers.