List the major categories of tangible capital
What will be an ideal response?
(1.) Nonresidential structures.
(2.) Durable equipment.
(3.) Residential structures.
(4.) Inventories.
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The simple spending multiplier is the inverse of the marginal propensity to consume
a. True b. False Indicate whether the statement is true or false
A corporation's earnings are the amount of revenue it receives for the sale of its products
a. minus its cost of production as measured by its accountants. Earnings must be paid out as dividends. b. minus its cost of production as measured by its accountants. Earnings may be paid out as dividends or retained by the corporation. c. minus its direct and indirect costs as measured by its economists. Earnings must be paid out as dividends. d. minus its direct and indirect cost as measure by its economists. Earnings may be paid out as dividends or retained by the corporation.