A. The purchase of goods and services
B. The purchase of capital equipment and structures
C. When we place our saving in the bank
D. The purchase of stocks and bonds
Related Mcqs:
- How is termed the balance of investment and return; in which investment and return are exactly equal ?
A. Break even
B. Breakeven point
C. Both of them
D. None of them - Investment funds are established for the supports of institutions such as hospitals investment is called ?
A. Charity funds
B. Attached funds
C. Endowment funds
D. Investment fund - The difference between goes investment and net investment is ?
A. Depreciation
B. Acceleration
C. Declaration
D. Capital investment - The accelerator theory of investment says that induced investment is determined by ?
A. the level of national income
B. the level of aggregate demand
C. the rate of change of national income
D. expectations - The difference between gross investment and net investment is ?
A. depreciation of the existing capital stock
B. productive investment
C. dwellings
D. inventories - If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?
A. Saving = Rs 300 investment = Rs 300
B. Saving = Rs 200 investment = Rs 100
C. Saving = Rs 100 investment = Rs 200
D. Saving = Rs 0 investment = Rs 0 - If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?
A. a reduction in the budget deficit
B. an increase in the budget deficit
C. an investment tax credit
D. None of the above - If an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration of ?
A. intermediation
B. equity finance
C. crowding out
D. the investment fund effect - If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?
A. the real interest rate should fall
B. the real interest rate should rise
C. the impact on the real interest rate is indeterminate
D. the real interest rate should not change - In a portfolio investment ?
A. investors are directly involved in managing the operations
B. as in direct investment investors export goods and services abroad
C. investors transfer the technology to local investors
D. investors have no control over operations