Chapter 2 questions well answered to
pass
3 characteristics of capital - correct answer ✔✔1. mobile
2. sensitive to environment
3. scarce
___ refers to levels of tax and government spending - correct answer ✔✔Fiscal Polocy
The only a)___ is savings; b)___ +___+___ are a significant source of investment capital - correct
answer ✔✔a) source of capital
b) retail, institutional, and foreign investors
The users of capital are 1) 2) 3) - correct answer ✔✔individuals, businesses, governments
When revenue fails to meet expenditures, gov makes 4 main instruments:
1.
2.
3.
4. - correct answer ✔✔t_bills
marketable_bonds
CSBs <- CanadaSavingsBonds
CPBs <- CanadaPremiumBonds