Fixed investment includes all of the following except:
a. all purchases by businesses that add to their inventories
b. all spending on capital goods.
c. all spending on producer goods.
d. all spending on goods that increase future production capabilities.
Answer: a. all purchases by businesses that add to their inventories
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When the price level is low and the demand for domestic goods increases, how does it affect international trade?
A) Prices of all international goods will increase. B) Prices of all international goods will decrease. C) Net exports will decrease. D) Net exports will increase.
Complete this sentence: in a market system income is generally earned
A) independently of acts of exchange and production. B) arbitrarily and randomly. C) unproductively. D) in the process of its creation.