When you think about investments in capital goods, the one category that is most important and, at least in the long run, yields the highest returns is investment in

When the marginal propensity to consume foreign imports (MPCF) rises, ceteris paribus, what happens to the trade balance?

a. It increases. b. It decreases. c. It depends on what happens to the MPC of domestic goods. d. It will not change.

Political business cycles which are the results of economic fluctuations that occur when discretionary policy is manipulated for political gain

Indicate whether the statement is true or false