Which of the following is true?
a. Purchases of stock are included as part of investment in the national income accounts.
b. Fixed investments include all spending on capital goods, as well as residential construction.
c. Investment spending is the least volatile category of GDP
d. All of the above are true.
b
Economics
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Since most people would be willing to pay far more for a cup of diamonds than for a cup of water,
A) diamonds provide more satisfaction to most people than water provides. B) most people are irrational when it comes to prestige or status goods. C) most people wrongly think they value diamonds more highly than water. D) people's choices and preferences are often inconsistent. E) very few people are ever in danger of dying of thirst.
Economics
Why do economists predict that investment increases when the real rate of interest falls?
What will be an ideal response?
Economics