6.Total investment depending in an economy will usually

a. rise as national income falls

b. rise as interest rates falls

c. remain unaffected by changes in interest rates

d.remain unaffected by changes in national income.

7.A cause of inflation characterized by an increase in the cost of production is

a. quantity theory of money

b. cost-push

c. demand-pull

8.Imagine an economy that has been recovery following depression.In its initial stages,it could be characterized by all of the following conditions except

a. increase in aggregate demand

b. rising income

c. increased inflation

d. favorable business and consumer expectations

9.If you were estimating the total of investment spending,which would you not include?

a. changes in inventories

b. purchases of stocks and bonds

c. new residential construction

d. new plant and equilibrium

10.Investment in inventories tend to vary

a. directly with the level of sales,inversely with the rate of investment.

b. inversely with sales directly with interest rates.

c. directly with sales and interest rates

d. inversely with sales and interest rates.