The new term introduced in the extended IS-LM model is

Any pro-growth policy that increases investment requires

a. an eventual increase in GDP b. increased production of consumption goods c. decreased production of capital goods d. a sacrifice of current consumption spending e. reduced government spending

Which is the best example of an intangible good?

A) the car you dream of owning but cannot afford B) the suit you hope will make a good impression when you go on job interviews C) the textbook study guide you hope will prepare you to perform well on examinations D) the advice and expertise provided by the music store clerk who sold you that CD