Investment,as Defined by Economists,would Not Include Which of the Following

question 175

Multiple Choice

Investment,as defined by economists,would not include which of the following? Ford

• A)buys a new robotic machine (from a plant in Ohio)to assemble cars.
• B)adds 1,000 new cars to inventories.
• C)builds another assembly plant in the United States.
• D)buys U.S.government bonds.

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Definitions:

Active Stabilization Policy

Economic policies aimed at minimizing business cycle fluctuations through fiscal and monetary interventions by the government.

Money Supply

The total amount of money available in an economy at a particular time, including cash, coins, and balances held in checking and savings accounts.

Expected Price Level

This term represents the anticipated average price of goods and services in an economy over a certain period.

Potential GDP

The maximum possible level of output an economy can achieve when all resources are utilized efficiently, without causing inflation.