Investment in everyday life is: a. The purchase of goods and services b. The purchase of capital equipment and structures c. When we place our savings in the bank d. The purchase of stock and bonds

An example of a flow variable is a. capital. b. consumption expenditure by households. c. the machinery owned by a firm. d. the cash held by households.

An example of an economic entity is a: a. town. b. business. c. non-profit hospital. d. church.

7.A Investment spending  A. responds more dramatically to changes in interest rates than to changes in business confidence, expectations, or technology.   B. typically increases when the interest rate falls.   C. does not respond to short-term interest rates.   D. responds negatively to technical change and product innovation.   7.B Net exports in the United States   A. will fall if prices in the United States rise relative to other nations' prices.   B. will fall if China reduces trade barriers against the United States.   C. will increase if prices in the United States rise relative to other nations' prices.   D. will increase if the price level in China declines.   7.C In an Aggregate Demand (AD)/Aggregate Supply (AS) diagram, __________________________ could explain a rise in cyclical unemployment?   A. a shift in AS to the left   B. a shift in AS to the right   C. a shift to the left in either AS or AD…

Patrick wants to start his own dental practice, but his expenditures exceed his income. Which statement best describes Patrick? a. He is a saver who demands loanable finds from the financial system. b. He is a saver who supplies loariable funds to the financial system c. He is a borrower who demands loanable funds from the financial system. d. He is a borrower who supplies loanable funds to the financial system