Melissa purchases shares in a government bond mutual fund. Is this included in the aggregate demand component "Investment"?
a. Yes, if it is a domestic mutual fund.
b. Yes, if the purchase is made out of current income.
c. No, unless the funds are deposited in a domestic financial institution.
d. No, it would never be included.
d
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Everything else remaining unchanged, what is likely to happen to the credit demand curve of a software producing firm if:
a. there is an increase in the real interest rate? b. they plan to expand production in near future?
Which of the following is an example of a normative question?
A) What fraction of an income tax cut will be spent on imported goods? B) How will an increase in the inheritance tax affect tax revenues? C) How will an increase in unemployment benefits affect the unemployment rate? D) Should Florida implement a state income tax to reduce its deficit?