Business finance companies
A) purchase accounts receivable of small firms at a discount.
B) sell commercial paper and buy long-term corporate bonds.
C) take in deposits from savers and buy corporate commercial paper.
D) are strictly regulated by state governments.
A
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In an economy, the government wants to increase aggregate demand by $50 billion at each price level to increase real GDP and reduce unemployment. If the MPS is 0.4, then it could increase government spending by:
A. $10 billion B. $20 billion C. $31.25 billion D. $40.50 billion
Which of the following statements is correct?
A. The demand for capital is derived from the demands for outputs. B. The demands for output are derived from the demand for capital. C. The demand for capital is derived from the demand for rent. D. The demand for rent is derived from the demand for capital.