Which of the following would increase gross private domestic investment in an economy?
A) an increase in the level of Apple's inventory
B) an increase in the shares of Apple stock households own
C) an increase in the number of workers Apple hires
D) an increase in the number of highway construction projects the government is funding
A
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The opportunity cost of holding excess reserves is the federal funds rate
A) minus the discount rate. B) plus the discount rate. C) plus the interest rate paid on excess reserves. D) minus the interest rate paid on excess reserves.
If markets are perfectly competitive, then the production of goods
A) will use the least costly combination of resources. B) will occur at an average total cost value that is above the minimum. C) will require government intervention. D) will always lead to business failures.