An economy"s determinants of production and also its production duty determine the economy"s:-labor pressure participation rate.-budget surplus or deficit.-population expansion rate.-output the goods and services.

You are watching: Consumption depends positively on ______ and investment depends negatively on ______.


At any specific point in time, the calculation of the economy:-is fixed because the need for goods and services is fixed.-varies since the an innovation for turning capital and also labor into goods and also services varies.-varies because the offers of capital and labor vary.-is fixed because the gives of capital and labor and the an innovation are fixed.
A competitive, profit-maximizing firm hires labor until the:-price of output multiplied by the marginal product that labor equates to the wage.-real wage equates to the real rental price that capital.-wage equals the rental price of capital.-marginal product the labor equals the wage.
According to the neoclassical theory of distribution, full output is divided between payments to capital and also payments come labor relying on their:-marginal productivities.-relative politics power.-supply.-equilibrium growth rates.
In a Cobb-Douglas production duty the marginal product of labor will boost if:-the amount of labor increases.-capital"s share of calculation increases.-the amount of resources increases.-average labor performance decreases.
According come the neoclassical concept of distribution, in an economy explained by a Cobb-Douglas production function, when average labor performance is farming rapidly:-economic profits will it is in positive.-workers will endure high rates of real wage growth.-labor"s share of total income will certainly be increasing.-labor"s share of earnings will be decreasing.
If the consumption role is offered by C = 150 + 0.85Y and Y rises by 1 unit, then C rises by:-0.85 units.-0.5 units.-0.15 units.-1 unit.
Other points equal, boost in the interest rate leads to:-sometimes boost and occasionally a diminish in the amount of investment products demanded.-a to decrease in the quantity of investment items demanded.-no readjust in the quantity of investment goods demanded.-an rise in the amount of investment goods demanded.
Consumption relies positively on ______ and also investment depends negatively ~ above ______.-the real interest rate; disposable income-public saving; personal saving-private saving; publicly saving-disposable income; the genuine interest rate
The equation F = C(Y-T)+I(r) + G may be solved for the equilibrium level of:-income.-the interest rate.-consumption.-government purchases.
National saving refers to:-income minus intake minus federal government spending.-taxes minus federal government spending.-disposable revenue minus consumption.-income minus investment.
In equilibrium, total investment equals:-private saving.-national saving.-public saving.-household saving.
If saving exceeds investment demand, and also consumption is no a duty of the interest rate:-the interest price will rise.-the interest rate will fall.-saving will certainly fall.-the need for loans exceeds the supply of loans.
According to the model occurred in chapter 3, when government spending rises without a readjust in taxes:-investment increases.-investment decreases.-consumption increases.-consumption decreases.
In the neoclassical design with fixed income, if over there is a decrease in government spending v no readjust in taxes, climate public conserving ______ and private saving ______.-decreases; does not change-decreases; increases-increases; increases.-increases; does not change
When federal government spending increases and taxes are boosted by an same amount, interest rates:-increase.-can vary wildly.-remain the same.-decrease.

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Assume that rise in customer confidence raises consumers" expectation of future income and also thus the lot they desire to consume this particular day for any type of given income. This shift, in a neoclassical economy, will:-lower investment and raise the interest rate.-raise both investment and also the attention rate.-lower both investment and also the attention rate.-raise investment and lower the attention rate.
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Solutions hand-operated for Use through Essentials that Investments7th EditionAlan J. Marcus, Alex Kane, Bruce Swensen, Zvi Bodie
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