There are two types of investment investmentthe

Info icon This preview shows pages 4–6. Sign up to view the full content.

View Full Document Right Arrow Icon
33) There are two types of investment: _____ investment—the spending by business firms on equipment and structures, and planned spending on residential houses—and _____ investment—spending by business firms on additional holdings of raw materials, parts, and finished goods. (a) planned; gross (b) planned; inventory (c) fixed; gross (d) fixed; inventory Answer: D Question Status: Previous Edition 34) A fall in inventories is synonymous with 35) A difference between inventory investment and fixed investment is that 36) Keynes mentioned two factors that influenced planned investment spending:
Image of page 4

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
830 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition 37) In the Keynesian cross diagram, the point at which the aggregate demand function crosses the 45 degree line indicates the (a) level of full employment income. (b) natural level of income. (c) equilibrium level of income. (d) autonomous level of income. Answer: C Question Status: Previous Edition 38) The equilibrium condition in the Keynesian model of income determination occurs when 39) Aggregate demand in an economy with no government or foreign trade is
Image of page 5
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern