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?

<p>Population growth (D)</p> Signup and view all the answers

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

<p>As interest rate increases, investment demand decreases (A)</p> Signup and view all the answers

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

<p>Profits (C)</p> Signup and view all the answers

According to the text, why do businessmen generally invest?

<p>To meet the increase in demand (B)</p> 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?

<p>TY = C + C + I (A)</p> Signup and view all the answers

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

<p>Y = I x M (C)</p> Signup and view all the answers

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

<p>C = Y - I (B)</p> Signup and view all the answers

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

<p>Kn = K + I - D (C)</p> Signup and view all the answers

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