The investment trade-off:
A. defines the opportunity cost of capital investment.
B. is why countries don't devote all their resources to capital investment.
C. is a reduction in current consumption to pay for the investment in capital intended to increase future production.
D. All of these are true.
Answer: D
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Which of the following is false?
A) Special interest legislation is necessarily bad legislation in the sense that it does not (because it cannot) ever benefit the general public. B) A special interest group is a subset of the general population that holds usually intense preferences for or against a particular government service, activity, or policy. C) Congressional districts can be thought of as special interest groups for certain purposes. D) Special interest groups are likely to argue for their specific policies or programs by claiming they serve the best interests of the general public.
The Fed could sell bonds in the open market in an effort to keep interest rates constant when
A. The discount rate increases. B. The reserve requirement increases. C. Money demand decreases. D. Money demand increases.