For Centuries Economists Have Puzzled Over the Relationship Between a Nation's

question 1

Multiple Choice

For centuries economists have puzzled over the relationship between a nation's money supply and its economic prosperity. In 1752, __________ suggested that if the money supply is increased when an economy is below full employment, spending will increase, which in turn creates economic expansion.

• A) Arthur Brown.
• B) Jan Tinbergen.
• C) Karl Marx.
• D) David Hume.

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Definitions:

Annual Net Incomes

The total profit of a company after all expenses and taxes have been deducted from revenues for one year.

Salvage Value

The estimate of an asset's worth at the end of its useful life.

Average Accounting Return

A financial ratio that measures the net profit of a project or investment as a percentage of its initial cost.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal yearly amounts.