Investment spending is a potent force in the macroeconomy, because ________
A) it is subject to large fluctuations
B) it is larger than other spending categories
C) it is the focus of macroeconomic policies
D) it expresses entrepreneurial talent
A
You might also like to view...
You have a bond that pays $60 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) The price of a share of stock in the company falls. B) Coupon payments on newly-issued bonds fall to $50 per year. C) Coupon payments on newly-issued bonds rise to $80 per year. D) The likelihood that the firm issuing your bond will default on debt increases.
In the case of heterogeneous causal effects, the following is not true:
A) in the circumstances in which OLS would normally be consistent (when E(ui Xi) = 0), the OLS estimator continues to be consistent. B) OLS estimation using heteroskedasticity-robust standard errors is identical to TSLS. C) the OLS estimator is properly interpreted as a consistent estimator of the average causal effect in the population being studied. D) the TSLS estimator in general is not a consistent estimator of the average causal effect if an individual's decision to receive treatment depends on the effectiveness of the treatment for that individual.