During periods of inflation, the official measure of the budget deficit:
Select correct option:
Overstates the change in the government's real indebtedness.
Understates the change in the government's real indebtedness.
Equals the change in the government's real indebtedness.
Should equal the expected rate of inflation.
------------------------- depends on the difference between the Marginal Product of Capital and the cost of capital.
Select correct option:
Net investment
Depreciation investment
Inventory investment
Gross investment
A rise in the general level of interest rates is most likely to cause a fall in:
Select correct option:
The level of planned capital investment.
The exchange rate.
The rate of unemployment.
The savings ratio.
Aggregate supply is the relation between real production and:
Select correct option:
The price level.
Aggregate expenditures.
Foreign trade.
The exchange rate.
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