11 Questions
Which one of the following is NOT a type of Capital Expenditure?
Physical Investment
Which one of the following is NOT a determinant of Income?
Capital market
Which one of the following is NOT considered as part of government Investment expenditure?
Consumption
Which of the following factors does NOT affect savings?
Population growth
According to the text, what is the relationship between interest rate and investment demand?
As interest rate increases, investment demand decreases
Which of the following is NOT a determinant of investment demand according to the text?
Profits
According to the text, why do businessmen generally invest?
To meet the increase in demand
Which one of these is the correct equation for calculating the total effect of consumption and investment on disposable income?
TY = C + C + I
Which one of these equations represents the relationship between investment, multiplier, and disposable income?
Y = I x M
Which one of these equations represents the change in consumption due to investment alone?
C = Y - I
Which one of these equations represents the stock of capital after depreciation and investment?
Kn = K + I - D
Quiz: The Effect of Investment in Economic Development Test your knowledge on the impact of investment in economic development. Explore the principles, definitions, and sources of investment expenditure. Discover how capital spending derived from accumulated savings and external sources can contribute to the circular flow.
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