1)Which of the following governemtn policies is likely to induce investment spending?
A)increasing taxes on savings
B)increasing taxes on investment
C)Increasing government spending
D)reducing government spending
2)Which of the following does NOT represent an institution that supports commerce?
A)Property rights
B)The rule of law
C)contract enforcment
D)none of the above
3)Which of the following explains the phenomenon of a low-level equilibrium?
A) In countries in which GDP is low, aggregate demand is low. As a result, there are few job opportunities.
B)In countries in which GDP is low, saving is low. As a result, little capital is avaliable for investment.
C) in countries in which GDP is low, investment is low. As a result, the stock of physical and human capital is low.
D) All of the above.
Tags: