Which of the following is true of investment spending in the U.S. economy?
a. Investment spending in 2009 was higher than in 2006.
b. Investment spending was almost double of household spending.
c. Businesses had reduced expenditures on capital goods in 2008 and 2009.
d. Investment spending exhibited a more or less steady increase between 1959 and 2009.
e. Investment spending fluctuated relatively less than consumption.
Question 2
Which of the following would be likely to expand a production possibilities curve?
a. a decrease in unemployment
b. a decrease in price levels
c. an increase in price levels
d. none of the above
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