Please answer all 8 questions thank you Investment decisions in the modem econom

Question

Please answer all 8 questions thank you

Investment decisions in the modem economy are mostly made by business. The most important exception is the decision to: buy a car Buy stocks and bonds Build a house All the above The basic determinants of the productive capacity of an economy are: Aggregate demand and the price level Consumer, Investor and government spending Labor skills, resources and the level of technology The level of unemployment, and the frequency of depression The term frictional employment is used to refer to: Those people who are changing jobs or are seasonally employed. Unemployment caused by Inadequate aggregate demand The unemployment level below which prices will start torise unacceptably fast. The highest possible level of unemployment that won't bring serious social unrest. The term "structural unemployment refers to: The same thing as "frictional" unemployment Persons unemployed because their skills are not matched with job openings. Persons who are incapable of doing any useful work. Persons out of the labor force because they are in the armed services, or in prison, or in other institutions. As compared to consumption spending, investment spending is: Larger in most years More widely fluctuating Less important in explaining business fluctuations A more stable proportion of total D.N.P. The term "marginal efficiency of investment" mean: The going rate of interest The expected rate of return on new investment The cost of capital relative to the cost of labor The increase in output made possible by an increase in the capital stock. "Money" in the modem U.S economy consists: About 25% of coins and paper currency, and 75% of demand deposits. About 25% of coins, and about 75% of paper currency. About 25% of savings deposits, and about 75% of demand deposits. Mainly of paper currency. The basic control over the supply of money is existence is in the hands of. People who deposit their money in banks The U.S. treasury, which mints the coins Banks, which establish demand deposits The Federal Reserve System, which controls the reserves that bank, must hold.

Explanation / Answer

1. Sol:- D.

2. Sol:- A.

3. Sol:- B.

4. Sol:- B.

5. Sol:- B.

6. Sol:- B.

7. Sol:- A.

8. Sol:- D.

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