« previous next »

Author Question: Why does investment spending rise and fall with the overall level of GDP in the economy? What ... (Read 98 times)

Awilson837

  • Hero Member
  • *****
  • Posts: 509
on: Jun 30, 2018
Why does investment spending rise and fall with the overall level of GDP in the economy?
 
  What will be an ideal response?

Question 2

An example of a consumption tax is
 
  A) an income tax. B) transfer payments.
  C) the Social Security tax. D) a sales tax.
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
Buy Test-Bank


Tabitha_2016

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

If firms believe that GDP will continue to increase into the future, they may want to invest in anticipation of high future demand for their products. Similarly, if GDP falls and firms believe that this will continue into the future, they are less likely to invest, as their expectation of the future seems less lucrative.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Does this child have legs of different lengths or scoliosis? Look at the level of the iliac crests a Does this child have legs of different lengths or scoliosis? Look at the level of the iliac crests a
Fall Fall
Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning
A visual inspection on this battery showed that the electrolyte level was below the plates in all ... A visual inspection on this battery showed that the electrolyte level was below the plates in all ...
People using walkers typically have a high level of mobility impairment. People using walkers typically have a high level of mobility impairment.
The developed countries must reduce the level of greenhouse gas emissions The developed countries must reduce the level of greenhouse gas emissions
Video: Oxygen transport - methods and oxyhemoglobin

For a complete list of videos, visit our video library