14. When economists refer to investment, they are describing a situation where: A. people are buying...
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14. When economists refer to "investment," they are describing a situation where: A. people are buying shares of corporate stock. B. resources are devoted to increasing future output. C. money is saved in a bank account. D. financial assets are purchased in the hope of a monetary gain. 15. Which of the following would an economist consider to be investment? A. Boeing building a new factory B. Oprah buying a $10 million home from a fellow celebrity C. A stockbroker buying 10,000 shares of Starbucks stock D. All of the above 16. For an economy to increase investment, it must: A. increase saving. B. increase present consumption. C. buy more stocks and bonds. D. increase nominal GDP. 17. The business cycle depicts: A. fluctuations in the general price level. B. the phases a business goes through from when it first opens to when it finally closes. C. the evolution of technology over time. D. short-run fluctuations in output and employment. 18. The term "recession" describes a situation where: A. inflation rates exceed normal levels. B. output and living standards decline. C. an economy's ability to produce is destroyed. D. government takes a less active role in economic matters. 19. Which of the following is most closely related to recessions? A. positive long-run economic growth B. rapid growth in the price level C. falling rates of unemployment D. negative growth in output 14. When economists refer to "investment," they are describing a situation where: A. people are buying shares of corporate stock. B. resources are devoted to increasing future output. C. money is saved in a bank account. D. financial assets are purchased in the hope of a monetary gain. 15. Which of the following would an economist consider to be investment? A. Boeing building a new factory B. Oprah buying a $10 million home from a fellow celebrity C. A stockbroker buying 10,000 shares of Starbucks stock D. All of the above 16. For an economy to increase investment, it must: A. increase saving. B. increase present consumption. C. buy more stocks and bonds. D. increase nominal GDP. 17. The business cycle depicts: A. fluctuations in the general price level. B. the phases a business goes through from when it first opens to when it finally closes. C. the evolution of technology over time. D. short-run fluctuations in output and employment. 18. The term "recession" describes a situation where: A. inflation rates exceed normal levels. B. output and living standards decline. C. an economy's ability to produce is destroyed. D. government takes a less active role in economic matters. 19. Which of the following is most closely related to recessions? A. positive long-run economic growth B. rapid growth in the price level C. falling rates of unemployment D. negative growth in output
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14 The correct option is b In an economic sense an investment is the purchas... View the full answer
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