Investment tends to be more variable over the business cycle than Question 14 options: 1) savings....
Investment tends to be more variable over the business cycle than
Question 14 options:
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Homework Answers
Investment tends to be more variable over the business cycle than consumer income because firms can reduce investment spending more easily than households can reduce consumption spending.
Answer: Option (5) i.e., consumer income.
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Investment tends to be more variable over the business cycle
than
Question 14 options:
1)
savings....
How do consumption and investment spending affect aggregate expenditures and output over the business cycle? Which...
How do consumption and investment spending affect aggregate expenditures and output over the business cycle? Which is more responsible for volatility - consumption or investment spending or both? Explain your choice. How do government actions affect consumption and investment?
3,4,5 please! QUESTION 3 An increase in planned real investment spending causes O a shift of...
3,4,5 please!
QUESTION 3 An increase in planned real investment spending causes O a shift of the C+I+ G+X curve and a movement along the aggregate demand curve. O a shift of the C + I+ G +X curve that causes the aggregate demand curve to shift. O a shift of the C+1+ G+X curve but has no effect on the aggregate demand curve. a movement along the C + I+ G+X curve and a shift of the aggregate demand...
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving a...
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving and net foreign saving. b) Investment and net exports. c) Total domestic saving and investment. d) Only total domestic saving. Question 2 (1 point) Saved Assuming all else held constant, an increase in net exports will lead to Question 2 options: a) an increase in net foreign saving. b) a decrease in the source of funds. c) a decrease in the trade...
1) If Inventory investment is higher than firms planned, a) actual investment is greater than planned...
1) If Inventory investment is higher than firms planned, a) actual investment is greater than planned investment. b) actual investment is less than planned investment. c) actual investment must be negative. d) actual and planned investment are equal. Refer to the information provided in Figure 8.8 below to answer the questions that follow. Figure 8.8 2) Refer to Figure 8.8. The amount of planned investment decreases if the interest rate a) rises from 4% to 8%. b) remains at 8%....
3. Over the business cycle, investment spending ______ consumption spending. A) is inversely correlated with B)...
3. Over the business cycle, investment spending ______ consumption spending. A) is inversely correlated with B) is more volatile than C) has about the same volatility as D) is less volatile than 4. Most economists believe that prices are: A) flexible in the short run but many are sticky in the long run. B) flexible in the long run but many are sticky in the short run. C) sticky in both the short and long runs. D) flexible in both...
Question 19 1 pts When a change in the price level leads to a change in the interest rate and thus a change in th...
Question 19 1 pts When a change in the price level leads to a change in the interest rate and thus a change in the quantity of aggregate demand, it is called theeffect. savings interest rate O price wealth o output 4 Previous Next Question 21 1 pts The Great Depression lasted longer and was deeper than the average recession, in part, because the government reduced tax rates and increased spending. the government reduced barriers to trade. there was a...
Which one of the following factors will cause the investment demand curve to increase?
QUESTION 15 Which one of the following factors will cause the investment demand curve to increase? a. Firms are finding themselves with a lot of excess capacity. b. Oil prices rise, triggering an increase in the cost of operating machinery and tools. c. The government raises business taxes significantly. d. Business executives become more optimistic about future sales and profits. QUESTION 16 Which one of the following will cause an upward shift of the aggregate expenditures schedule? a. An increase in real GDP (income) b. An increase in the...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and f...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
monovimo) O mona 5. If over any given period, domestic investment Spending is greater than total...
monovimo) O mona 5. If over any given period, domestic investment Spending is greater than total domestic savings then, it will be reasonable to expect that a. Net exports will be zero. b. Net exports will be positive. c. Net exports will be negative, d. Net exports may be either positive or negative. 6. List all of the following that are included in the definition of money that is most relevant to analysis of Federal Reserve monetary policy, that is...
Please do all Thank you 7. Given the expected rate of return on all possible investment...
Please do all
Thank you
7. Given the expected rate of return on all possible investment opportunities in the economy, a(n) B. decrease in the real rate of interest will tend to increase the level of investment. C. decrea A. increase in the real rate of interest will tend to increase the level of investment. se in the real rate of interest will tend to decrease the level of investment. D. change in the real interest rate will have no...
3,4,5 please!
QUESTION 3 An increase in planned real investment spending causes O a shift of the C+I+ G+X curve and a movement along the aggregate demand curve. O a shift of the C + I+ G +X curve that causes the aggregate demand curve to shift. O a shift of the C+1+ G+X curve but has no effect on the aggregate demand curve. a movement along the C + I+ G+X curve and a shift of the aggregate demand...
Question 19 1 pts When a change in the price level leads to a change in the interest rate and thus a change in the quantity of aggregate demand, it is called theeffect. savings interest rate O price wealth o output 4 Previous Next Question 21 1 pts The Great Depression lasted longer and was deeper than the average recession, in part, because the government reduced tax rates and increased spending. the government reduced barriers to trade. there was a...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
monovimo) O mona 5. If over any given period, domestic investment Spending is greater than total domestic savings then, it will be reasonable to expect that a. Net exports will be zero. b. Net exports will be positive. c. Net exports will be negative, d. Net exports may be either positive or negative. 6. List all of the following that are included in the definition of money that is most relevant to analysis of Federal Reserve monetary policy, that is...
Please do all
Thank you
7. Given the expected rate of return on all possible investment opportunities in the economy, a(n) B. decrease in the real rate of interest will tend to increase the level of investment. C. decrea A. increase in the real rate of interest will tend to increase the level of investment. se in the real rate of interest will tend to decrease the level of investment. D. change in the real interest rate will have no...
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