Recall the Application about energy price uncertainty and its impact on investment spending and GDP growth to answer the following question(s) . Increases in oil prices can lead to a drop in GDP. However, uncertainty about oil prices is also an important factor. The volatility of oil prices creates uncertainty for firms making investment decisions, and adversely affects GDP growth.
-This application addresses the idea that
A) financial intermediaries facilitate investment spending.
B) government spending is needed to pull an economy out of a recession.
C) investment spending is the least stable component of GDP.
D) consumer spending is the most stable component of GDP.
Correct Answer:
Verified
Q6: The multiplier-accelerator model was developed by
A) John
Q7: Accelerator theory refers to the theory of
A)
Q8: Ceteris paribus, as real GDP expected growth
Q9: If firms receive an economic forecast predicting
Q10: When investors reduce their investment spending, it
Q12: The theory of investment that emphasizes the
Q13: From the beginning of the 1990s to
Q14: Optimistic investors tend to _ their investment
Q15: Recall the Application about energy price uncertainty
Q16: Which of the following is an example
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents