Which one of the following statements is TRUE?
A. Over the years, real consumption spending has been more volatile than real investment spending.
B. Over the years, real investment spending has been more volatile than real consumption spending.
C. In the Keynesian model, changes in the volume of real investment spending are fully explained by changes in the real interest rate.
D. Domestic real investment in the United States was highest during the Great Depression.
Answer: B
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Assuming that the rent ceiling is strictly enforced so that there is no black market, which of the following statements about a housing market with a rent ceiling set below the equilibrium rent is correct?
A) The rent for housing equals the ceiling rent or higher. B) There is excess supply of housing. C) The rent ceiling increases the amount of producers' surplus. D) The rent ceiling creates a deadweight loss. E) The rent ceiling enforces efficiency upon the housing market.
A patent gives an innovating firm how many years of legal protection from competition?
a. 1 year b. 5 years c. 10 years d. 20 years e. 23 years
Anna borrows $5,000 from a bank and withdraws $1,000 from her personal savings to start a coffee shop. The interest rate is 5 percent for both the bank loan and her personal savings. Her opportunity cost of capital is $250
a. True b. False Indicate whether the statement is true or false
The International Monetary Fund was established to manage the Bretton Woods System.
Answer the following statement true (T) or false (F)