In the simple accelerator theory an increase in expected sales will
A) lead to an increase in net investment.
B) not necessarily lead to an increase in net investment.
C) lead to an immediate increase in replacement investment.
D) lead to an increase in net investment in the following period.
B
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The tax incidence on buyers is higher if ________
A) the buyers and sellers of a good are equally sensitive to price changes B) the elasticity of the market demand curve is higher than the elasticity of the market supply curve C) the elasticity of the market supply curve is higher than the elasticity of the market demand curve D) the number of sellers in a market is larger than the number of buyers
U.S. government purchases of gold are officially carried out by the
A) New York Federal Reserve Bank. B) Federal Open Market Committee. C) Federal Deposit Insurance Corporation. D) U.S. Treasury.