Question 1

Under what circumstances does investment increase?

Accepted Answer

A)  when firms become pessimistic in their expectations
B)  when firms have very low capital utilization rates
C)  when interest rates are higher
D)  when tax rates on businesses are reducedE) A) and C)
F) B) and C)

Question 2

Figure 8-2
 
-Refer to Figure 8-2.Which of the following would a shift in aggregate demand from AD₀ to AD₁ illustrate?

Accepted Answer

A)  slower growth rates by a major trading partner, combined with an increase in stock market wealth
B)  an increase in investment, combined with an increase in imports
C)  a reduction in business expectations, combined with the imposition of new tariffs by major trading partners
D)  the discovery of new, profitable, technological investment opportunities, combined with inventory levels that have fallen below desired levelsE) A) and D)
F) All of the above

Question 3

Figure 8-1
 
-Refer to Figure 8-1.Which of the following could shift the investment demand curve from ID₀ to ID₁?

Accepted Answer

A)  the discovery of new, profitable investment opportunities
B)  higher business taxes
C)  inventories rising above desired levels
D)  pessimistic sales and profit forecastsE) All of the above
F) B) and C)

Question 4

If consumption in Canada was 68 percent of GDP,investment was 19 percent,government purchases were 13 percent,exports were 14 percent,and imports were 14 percent,what is the net exports percentage of GDP?

Accepted Answer

A)  -28 percent
B)  -1 percent
C)  0 percent
D)  28 percentE) A) and B)
F) A) and C)

Exam 8: Aggregate Demand

Figure 8-1 -Refer to Figure 8-1.Which of the following could shift the investment demand curve from ID₀ to ID₁?

Correct Answer
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If consumption in Canada was 68 percent of GDP,investment was 19 percent,government purchases were 13 percent,exports were 14 percent,and imports were 14 percent,what is the net exports percentage of GDP?

Correct Answer
verified

Under what circumstances does investment increase?

Correct Answer
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Figure 8-2 -Refer to Figure 8-2.Which of the following would a shift in aggregate demand from AD₀ to AD₁ illustrate?

Correct Answer
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Exam 8: Aggregate Demand

Figure 8-1 -Refer to Figure 8-1.Which of the following could shift the investment demand curve from ID₀ to ID₁?

Correct AnswerverifiedShow Answer

If consumption in Canada was 68 percent of GDP,investment was 19 percent,government purchases were 13 percent,exports were 14 percent,and imports were 14 percent,what is the net exports percentage of GDP?

Correct AnswerverifiedShow Answer

Under what circumstances does investment increase?

Correct AnswerverifiedShow Answer

Figure 8-2 -Refer to Figure 8-2.Which of the following would a shift in aggregate demand from AD₀ to AD₁ illustrate?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified