Saving is $15 billion at the $125 billion equilibrium level of output in a closed, private economy. Actual investment must be:
A. Less than saving
B. Greater than saving
C. Equal to $15 billion
D. Equal to $125 billion
C. Equal to $15 billion
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Mutual funds in which a fixed number of nonredeemable shares are sold at an initial offering and are then traded in the over-the-counter market, like shares of common stock, are called
A) open-end funds. B) close-end funds. C) OTC funds. D) primary-issue funds.
At the end of the 18th century, approximately _______ percent of the American people earned a major portion of their income by farming
a. 25 b. 50 c. 70 d. 90
If a company that drilled for and produced oil acquired a firm which refined oil into gasoline, this would be referred to as a
A) horizontal merger. B) vertical merger. C) conglomerate merger. D) reverse merger.
Dan, a writer for a business magazine, interviewed managers at 100 large corporations. All of the managers indicated that the primary determinant of planned investment is expected sales and not the interest rate. From this information, Dan concluded that
A) fiscal policy would be very effective, but monetary policy would not be very effective. B) neither expansionary nor contractionary fiscal policy would be very effective. C) both expansionary and contractionary monetary policy would be very effective. D) contractionary fiscal policy would not be very effective, but contractionary monetary policy would be very effective.