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Assume that consumption decreases, when interest rates increase. If there is a technological advance that leads to an increase in investment
A. investment increases and the interest rate rises.
B. investment and the interest rate are both unchanged.
C. investment is unchanged and the interest rate rises.
D. investment decreases and the interest rate rises.
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- Which of the following can cause planned investment by firms to increase? a. To reduce constant budget deficits, the government announces plans to increase the corporate tax rate. b. An increase in the interest rate due to an increase in the cost of making financial transactions. c. Firms become optimistic about economic conditions after seeing reports of strong growth in consumer spending. d. A major recession has reduced consumption spending, hurting profit levels for high-end car manufacturers.What is investment? A. Expenditure on goods produced but not consumed during the period under consideration B. Expenditure on goods produced and consumed during the period under consideration C. Expenditure on goods by the government. D. Expenditure on wagesThe real interest rate increases and investment increases. _____ a. The real interest rate increases and investment increases b. The real interest rate decreases and investment decreases. c. The real interest rate increases and investment decreases. d. Cannot be determined from the given information
- If the population of a country grows and increases both the labor force and the demand for consumption, the GDP of that country is likely to... A. Depends on other factors B. Fall C. Stay Constant D. RiseAn increase in planned investment causes :Select one a. output to decrease, but by a smaller .amount than the decrease in investment .b. output to increase c. output to decrease, but by a larger .amount than the decrease in investment d. output to decrease by an amount equal to .the decrease in investmentIf business taxes are reduced and the real interest rate increases: * A. consumption and saving will necessarily increase. B. the level of investment spending might either increase or decrease. C. the level of investment spending will necessarily increase D. the level of investment spending will necessarily decrease
- if government spending and the price level increase, then a. the interest rate increases, consumption declines, and investment spending declines. b. the interest rate decreases, consumption declines, and investment spending declines. c. the interest rate increases, consumption increases, and investment spending increases. d. the interest rate decreases, consumption increases, and investment spending increases.b. Explain the difference between saving and investment as defined by a macroeconomist. c. Which of the following situations in c (i) & c (ii) represent investment? Saving? Explain(i) Your family takes out a mortgage and buys a new house. (ii) You use your paycheque to buy stock in Sagicor Financial Services.The position of IS curve depends on_______. Select one: a. none of the given options b. rate of investment, c. rate of interest, d. autonomous expenditure
- Investment is aa. small part of real GDP, so it accounts for a small share of the fluctuation in real GDP.b. small part of real GDP, yet it accounts for a large share of the fluctuation in real GDP.c. large part of real GDP, so it accounts for a large share of the fluctuation in real GDP.d. large part of real GDP, yet it accounts for a small share of the fluctuation in real GDP.Savings must be invested in order to bridge the gap between: a. a drop in both income and consumption b. a rise in both income and consumption c. to check the ratio of investment in incomeExplain the difference between saving and investment as defined by macroeconomist. Which of the following situations represent investment? Saving? Explain. a. Your family takes out a mortgage and buys a new house. b. You use your €500 wage payment to buy stock in BP. c. Your flatmate earns €200 and deposits it in her account at a bank. d. You borrow €5.000 from a bank to buy a car to use in your pizza delivery business.