Other things being equal, investment spending _____ when _____.
A) decreases; firms expect sales to fall
B) increases; firms have excessive production capacity
C) increases; the rate of growth of real GDP is low
D) decreases; the obsolete or worn out physical capital increases
Correct Answer:
Verified
Q47: According to the accelerator principle there is
Q48: The higher the production capacity of the
Q49: Planned investment spending will decrease if:
A) the
Q50: Inventory investment can be:
A) negative only.
B) zero
Q51: If planned investment spending is $2 trillion
Q53: Actual investment equals planned investment:
A) plus unplanned
Q54: Inventory investment is:
A) a part of planned
Q55: According to the _, there is a
Q56: According to the accelerator principle:
A) a higher
Q57: In a simple, closed economy (no government
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