When a(n) ________ in investment increases consumption and real GDP, part of the increase in expenditure is on ________, not ________ goods and services
A) increase; exports; U.S.-produced
B) decrease; exports ; U.S.-produced
C) increase; imports; U.S.-produced
D) increase; imports; foreign-produced
E) decrease; imports; U.S.-produced
C
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All else remaining equal, if the amount of money market deposit accounts increase, this will increase the size of:
a) only M1. b) only M2. c) M1 and M2. d) neither M1 nor M2.
The size of the reduction in quantity of labor hired by a firm due to an increase in the wage rate depends upon all of the following except
a. what percentage of total costs are made up of labor costs. b. how much quantity demanded in the output market will be reduced by a higher price. c. the capital to labor ratio before the wage increase. d. how easily other inputs can be substituted for labor.