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The Impact of Investment in Economic Development Quiz

11 Questions

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The Impact of Investment in Economic Development Quiz

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Questions and Answers

Which one of the following is NOT a type of Capital Expenditure?

Inventory Investment

Physical Investment (correct)

Real/Financial Investment

Fixed Investment

Which one of the following is NOT a determinant of Income?

Investment

Consumption

Capital market (correct)

Savings

Which one of the following is NOT considered as part of government Investment expenditure?

Hospitals

Schools

Roads

Consumption (correct)

Which of the following factors does NOT affect savings?

Population growth Signup and view all the answers

According to the text, what is the relationship between interest rate and investment demand?

As interest rate increases, investment demand decreases Signup and view all the answers

Which of the following is NOT a determinant of investment demand according to the text?

Profits Signup and view all the answers

According to the text, why do businessmen generally invest?

To meet the increase in demand Signup and view all the answers

Which one of these is the correct equation for calculating the total effect of consumption and investment on disposable income?

TY = C + C + I Signup and view all the answers

Which one of these equations represents the relationship between investment, multiplier, and disposable income?

Y = I x M Signup and view all the answers

Which one of these equations represents the change in consumption due to investment alone?

C = Y - I Signup and view all the answers

Which one of these equations represents the stock of capital after depreciation and investment?

Kn = K + I - D Signup and view all the answers