The neoclassical theory of investment
A) links investment spending to stock prices.
B) emphasizes that current investment spending depends positively on the expected future growth of GDP.
C) emphasizes the role of real interest rates and taxes as determinants of investment.
D) suggests that a downturn in real GDP will lead to a sharp fall in investment, which leads to further reductions in GDP through the multiplier.
C
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According to the textbook, when a foreign government provides aid to a poor nation, it
A) interferes in the domestic affairs of the poor nation. B) behaves in the interest of the poor nation. C) pursues the global interest. D) does all of the above. E) does none of the above.
Which of the following is true?
a. Patents reduce a firm's incentive to develop new products. b. Patents are given for new works of art or literature. c. Patents give a permanent exclusive right to produce a new good. d. Patents give a temporary exclusive right to produce a new good. e. Patents guarantee economic profits.