Actual investment spending includes
What will be an ideal response?
- change in inventories
- spending on new capital equipment
- spending on new houses
You might also like to view...
If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of $0.5 trillion, then saving will
A) increase by $0.25 trillion. B) increase by $0.5 trillion. C) increase by $1 trillion. D) remain unchanged.
GDP is best defined as the ________ in a given time period
A) number of final goods and services produced within a country B) market value of the final goods and services produced within a country C) market value of the final goods and services consumed by a nation's citizens D) number of goods and services produced within a country E) market value of all the goods and services produced within a country
A credible nominal anchor
A) can help overcome the time-inconsistency problem by providing an expected constraint on discretionary policy. B) can help to anchor inflation expectations, which leads to smaller fluctuations in inflation. C) is required for a policy rule. D) all of the above. E) both A and B.
The benefits received principle suggests that: a. traditional exemptions should be removed since they benefit people with ability to pay more taxes. b. people with different levels of income should be treated in the same manner
c. individuals receiving the benefits should be those who pay for them. d. those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes.