Which of the following is an example of unplanned investment spending?
a. A fall in the sales of Brax Inc.'s leather jackets that leads to an increase in its stock in the warehouses
b. An increase in the demand for Martha's blueberry cheesecakes that increases her demand for cheese
c. A fall in the demand for Oliver's muffins that forces him to give away his muffins for free
d. A seafood restaurant that keeps a few steaks in its stock every week
a
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When unions or legislation makes it necessary for a firm to pay higher wages,
A) efficiency declines. B) income is transferred from wealthy people to poor people. C) the marginal value of retained employees falls. D) the marginal value of retained employees rises. E) total purchasing power increases.
The confidence problem of the Bretton Woods systems articulated by Robert Triffin refers to
A) the unwillingness of central banks to accumulate currency for fear of not being able to convert it to gold in case a run on the banks occurs. B) consumer fear of stock market instability. C) producer fear of rising wages. D) the lack of convertibility of gold into silver. E) low consumer spending because of balance of payment crises.