In the circular flow model, injections and leakages are associated with
a. saving and investment.
b. consumption and investment.
c. realized investment and desired investment.
d. saving and taxes.
A
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However, this type of bargaining will tend to be limited when:
Suppose Mail Boxes Etc. buys a new copier for its store for $1000. A year later, when the firm wants to upgrade to a new copier, it finds that the old copier is only worth $750. Over the year the copier was used, ________ has occurred
A) replacement investment B) gross investment C) depreciation D) net investment
The Fed attempts to affect the level of borrowed reserves by
A) changing the discount rate. B) changing legal reserve requirements. C) open market sales. D) open market purchases.
Suppose that one-year treasury bills yield 8 percent in the United States and 6 percent in Japan. Investors will prefer to purchase the U.S. securities, unless they expect the dollar to __________ against the yen over the next year
A) depreciate by less than 2 percent B) depreciate by more than 2 percent C) appreciate by less than 2 percent D) appreciate by more than 2 percent