Answer true or false:
1. When you buy 100 shares of IBM it is an investment according to economists.
2. If consumers have few durable goods, this will lower the C line, all other things equal.
3. A corporation is a legal person separate from the owners.
4. Investment is more stable than consumption.
5. Consumption is about 2/3 of overall spending each year in the US.
6. Net investment is gross investment minus depreciation.
7. High interest’s rates discourage business investment, all other things equal.
8. A bond holder is a part owner of a company.
9. High consumer debt would lower C line, all other things equal.
10. Income is the largest determinant of consumption.