Answer True or False for each of thefollowing. (3 pointseach) When you buy 100 shares of IBM it is an investment according toeconomists. If consumers have few durable goods, this will lower the C line,all other things equal. A corporation is a legal person separate from the owners. Investment is more stable than consumption. Consumption is about 2/3 of overall spending each year in theUS. Net investment is gross investment minus depreciation. High interest rates discourage business investment, all otherthings equal. A bond holder is a part owner of a company. High consumer debt would lower the C line, all other thingsequal. Income is the largest determinant of consumption. . . .
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