A. An injection that increases aggregate demand
B. A withdrawal that increase aggregate demand
C. An injection that decreases aggregate demand
D. A withdrawal that decrease aggregate
Related Mcqs:
- 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 - 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 gross investment and net investment is ?
A. depreciation of the existing capital stock
B. productive investment
C. dwellings
D. inventories - Investment depends mainly on ?
A. Past levels of income
B. Future expected profits
C. Present national income levels
D. Historic data - If an increase in investment leads to a bigger increase in national income this called the ?
A. Accelerator
B. Aggregate demand
C. Monetarism
D. Multiplier - Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?
A. Rs80 million
B. Rs20 million
C. Rs 15 million
D. Rs26.67 million - A profit maximising firm will invest up to the level of investment where ?
A. The cost of borrowing equals the marginal efficiency of capital
B. The cost of borrowing is greater than the marginal efficiency of capital
C. The cost of borrowing is less then the marginal efficiency of capital
D. The cost of borrowing equals the marginal propensity to consume - Investment is a unstable element of aggregate demand because it depends heavily on ?
A. Government policy
B. Expectations
C. National income
D. Historic trends
