Savings leads to investment. Saving is a secret of investment.
So for investment to increase, saving must also increase.
Answer: option (b).
for investment to increase_________, must also increase: For investment to increase, must also increase: Multiple Choice...
Which of the following is not a good reason to offer for an acquisition? Multiple Choice 0/1 points awarded Scored ( ) It will diversify the firm's business risk. It will provide diseconomies of scale. It will decrease earnings per share. It will increase agency costs. It will increase the firm's debt capacity
Suppose that every additional three percentage points in the investment rate (1 + GDP) boost economic growth by one percentage point. Assume also that all investment must be financed with consumer saving. The economy is now assumed to be fully employed at GDP Consumption Saving Investment $16 trillion 10 trillion 3 trillion 3 trillion If the goal is to raise the economic growth rate by 1 percent, Instructions: Enter your responses as a whole number. a. By how much must...
Changes in business inventories are: Multiple Choice classified as consumption expenditures. classified as investment expenditures. classified as government purchases. excluded from GDP.
1. Government transfer payments are: Multiple Choice a. included in GDP under the personal consumption of the recipient. b. not included in GDP since the recipient will use the funds to purchase final goods and services. c. included in GDP to account for the tax revenue that is generated to pay for them. d. included in GDP under government spending. 2. The purchase of a new television produced in Japan will be included in GDP as: Multiple Choice a. an...
Which of the below is not required to compute an investment return? Multiple Choice O Interest rate Price of the asset at purchase Price of the asset at sale 0 Distributed income < Prey 6 of 14 Next > MacBook Air co: F 80 000 000 F2 F3 44 F4 F5
Which of the following would increase the risk of a loan to the lender? Multiple Choice Inflation rate greater than loan rate A short time to maturity o Consumer Price Index o o Rule of 72 Rule or 72 o Inflation rate lower than loan rate o
Which of the following is an example of fiscal stimulus? Multiple Choice an increase in government spending on new military jet fighters an increase in consumption because of improved consumer confidence an increase in personal income taxes for families with children an increase in the purchase of office buildings by foreign investors If consumers spend 98 cents out of every extra dollar received, the Multiple Choice marginal propensity to consume is 98. marginal propensity to save is 1.02. marginal propensity...
Computation of GOP by the expenditures method would include the purchase of Multiple Choice land by the US Department of Interior. 0 O fertilizer by a former 0 cement by a construction company 0 0 government bonds by a commercial bank. < Prev 11 of 50 No > 30 || | 3 1 0 1 ; e Real gross domestic product Multiple Choice C will increase if the level of output increases О can change from one year to the...
Questions 28-30 1. Assume that investment expenditures () increase by a multiple of 10 dollars for each 1 percentage point decrease in Sunland's rate of interest (i). 2. Sunland's simple (no inflation) GDP multiplier is 20. 3. Sunland's money multiplier (no currency drainage) is 5. 4. When Sunland's money supply changes by $20, the rate of interest (i) changes by 1 percentage point. 28. What change in investment expenditures (I) is required to bridge Sunland's current recessionary gap of $400?...
S oul vices GED available until you sign in again A firm invests in a new machine that costs $5,000 a year but which is expected to produce an increase in total revenue of $5,200 a year. The current real rate of interest is 7 percent. The firm should Multiple Choice not undertake the investment, because the expected rate of return of 6 percent is less than the real rate of interest. O not undertake the investment, because the expected...