2. The gross private investment is the investment made by the private sector on the purchase of machinery, plants, tools etc..... There are other three investments also.
Non -residential investment.
Residential investment.
Change in inventories.
The non residential investment includes the expenditure made by the firms on machinery , tools, plant capacity and etc.... The residential investment includes expenditure on houses by the firms and households.
Ans: It includes the production of new software.
3. The central bank of the nation has variety tools to influence the aggregate demand in the country. '
If the central bank lower the discount rate that would increase the money supply, the increase in the money supply further stimulate the aggregate demand. The purchase of the treasury securities also adds more money into the hands of public and this will increase the money supply.
Ans: Decreasing taxes.
QUESTION 2 Which statement about US private domestic investment is INCORRECT? It includes the purchase of...
QUESTION 1 increases the volume of imports in an economy. A decrease in the price of domestic goods and services. O An increase in national income A decrease in national income. An increase in the price of foreign goods and services. QUESTION 2 Which statement about US private domestic investment is INCORRECT? It includes the purchase of machinery by foreign businesses. It does not include investments by the government. It includes the production of new software. It includes new residential...
answer all
QUESTION 19 Which statement about US private domestic investment is INCORRECT? It includes the purchase of machinery by foreign businesses. It does not include investments by the government. It includes the production of new software. It includes new residential construction. Refer to the below graph. At a price level of 116 116 110 105 1,0002,000 3,100 Real GDP (billions of dollars per year) inventories would fall. firms will have to raise their prices. aggregate quantity demanded will exceed...
answer every single picture
QUESTION 5 Suppose James transfers $500 from his checking account to his savings account. As a result of this action, OM1 stays the same and M2 falls. M1 falls and M2 stays the same. OBoth M1 and M2 fall. OBoth M1 and M2 stay the same. We were unable to transcribe this image1 poi QUESTION 7 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess reserves and consumers hold no cash, this...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM
QUESTION 1 One way to reduce the recessionary gap through fiscal policy is to O increase government purchases. increase taxes. O decrease transfer payments. decrease the MPC QUESTION 2 Which of the following is true of open-market operations? It involves the purchase and sale of government securities by the central bank. O it involves the purchase and sale of stocks and bonds by private banks. It involves measures taken by...
QUESTION 9 An automatic stabilizer is O a tool that helps reduce the effect of a fall in demand for a firm's product. O a tool that ensures imports always equal exports in an economy a feature of the economy that reduces its sensitivity to shocks. O a feature of the economy that reduces its dependence on international trade. QUESTION 10 Which of the following is NOT a way for the Fed to increase aggregate demand? O Lowering the discount...
3. How the Fed influences the money supply Which of the following are ways that the Federal Reserve influences the U.S. economy through its monetary policies? Check all that apply. O Using open-market operations to sell securities, the Fed can increase the money supply, thereby increasing interest rates and subsequently reducing the rate of inflation. O Using open-market operations to buy securities, the Fed can increase the money supply, thereby increasing interest rates, which would cause security prices to decrease. Using open-market operations to sell...
You are on question 16 OT 16 Which of the following statements about quantitative easing describes it best? O Quantitative easing means encouraging government agencies to maintain income maintenance programs through improving credit conditions. O Quantitative easing means fostering private household consumption. Quantitative easing means encouraging private firms to increase capital expansion projects through improving credit conditions. Previous - Next Submit ECON 2105 Final...docx - Progress You are on question 10 of 16 An open market sale of US Treasury...
10.) Which of the following is an example of an automatic stabilizer? A. The reduction in the money supply that occurs as banks become less willing to make loans during a recession B. The reduction in real wages that occurs as the economy goes into a recession C. The increase in government spending that occurs as the result of new spending bills passed by Congress D. The rise in tax revenue that occurs as a result of growth in real...
Which two phrases represent the views of globalization? Choose two answers. A pendulum that swings from one extreme to another A competition among key financial centers and markets A continuing force sweeping through the world An unplanned result of corporate responses to a variety of opportunities A trading of goods and services between the most and least regulated countries What are two trade barriers? Choose two answers. Nontariffs Foreign languages The ocean Tariffs Shipping What is the effect of tariff...
Question 50 (1 point) A(n) _____ in oil prices and a(n) _____ in taxes will shift short-run aggregate supply to the left. Question 50 options: a) decrease; increase b) decrease; decrease c) increase; decrease d) increase; increase Question 51 (1 point) Which of the following events will shift the aggregate demand curve to the right? Question 51 options: a) an increase in household debt b) a catastrophic hurricane hitting the northeastern United States c) a decrease in taxes d) a...