Investment Function Chapter 7 Quiz

Investment is a process of building up the ______ stock

Investment expenditure is mainly derived not from current income and consumption but from accumulated ______ and other sources external to the circular flow

Investment is the capital expenditure on the purchase of physical assets such as plant, machinery, and equipment, also known as fixed ______

Physical investment creates new assets thereby adding to the country's ______ capacity

Financial investment only transfers the ownership of existing assets from one person or institution to ______

Savings is a leakage from the circular flow which can be channeled back to the circular flow as a basic source of ______ spending

Investment expenditure is a component of ______ demand

Investment requires that an amount of current consumption be ______

A business may borrow the savings of the economy to finance ______ spending

Investment increases the ______ stock

Investment expenditure is normally defined as consisting only of ______ sector investment spending

In national income analysis, investment is the provision for social projects undertaken by the ______