The funds that firms use to buy capital come directly or indirectly from households.

Answer the following statement true (T) or false (F)


True

Economics

You might also like to view...

The AS curve shifts leftward if

A) good weather increases agricultural harvests. B) OPEC reduces world oil prices. C) tax cuts stimulate labor supply. D) the money wage rate increases. E) government expenditure increases.

Economics

Keynes believed which of the following?

A. The government has a role to play in fighting unemployment, but not in fighting inflation. B. The government has a role to play in fighting inflation and unemployment. C. The government has a role to play in fighting inflation, but not in fighting unemployment. D. The government does not have a role to play in fighting inflation or unemployment.

Economics

If a product has only a few acceptable substitutes, demand for the product is most likely to be:

A. very inelastic. B. inelastic. C. elastic. D. very elastic.

Economics

Exchange rates that are allowed to fluctuate in response to changes in supply and demand is known as

A. fixed exchange rates. B. standard drawing rights. C. the foreign exchange markets. D. flexible exchange rates.

Economics