Investment Function Chapter 7 Quiz
12 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Investment is a process of building up the ______ stock

capital

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

savings

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

investment

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

<p>productive</p> Signup and view all the answers

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

<p>another</p> Signup and view all the answers

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

<p>investment</p> Signup and view all the answers

Investment expenditure is a component of ______ demand

<p>aggregate</p> Signup and view all the answers

Investment requires that an amount of current consumption be ______

<p>foregone</p> Signup and view all the answers

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

<p>investment</p> Signup and view all the answers

Investment increases the ______ stock

<p>capital</p> Signup and view all the answers

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

<p>private</p> Signup and view all the answers

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

<p>government</p> Signup and view all the answers

More Like This

Use Quizgecko on...
Browser
Browser