Which of the Following Will Cause Investment to Fall

Hence investment decisions may be postponed until interest rates return to lower levels. None of the above are correct.

Pinterest

Let us suppose that consumer expectations are optimistic and therefore consumer spending rises.

. The interest rate to rise. Interest rates to fall investment spending to rise and aggregate demand to rise. A decrease in the investment function.

Interest rates to rise investment spending to rise and aggregate demand to rise. Which one of the following is most likely to lead to a fall in aggregate investment. D An increase in aggregate demand.

A fiscal expansion coupled with a monetary expansion must always cause. An increase in real interest rates from 5 to 8 b. C A reduction in the average level of interest rates.

Secondly if interest rates rise firms may anticipate that consumers will reduce their spending and the benefit of investing will be lost. Both an increase in the money supply and an investment tax credit. The Income-Expenditure Approach 3.

A decrease in the amount of real planned investment. 45Explain whether each of the following would cause the value of the multiplier to be larger or smaller. A rightward shift of the investment demand curve would be caused by aan a.

A decrease in the corporate profits tax rate from 48 to 34 c. B An increase in investment and a decrease in government spending. Increase in the expected rate of return on investment caused by an increase in business confidence.

A decrease in disposable income. C An increase in investment and an increase in private saving. A fall in the marginal rate of return on investment.

A A reduction in the level of unemployment. A lower interest rates and therefore decrease the level of saving and investment B lower interest rates stimulate investment spending and increase national income C lower interest rates and bond prices and decrease money demand D stimulate investment spending shifting both the LM- and IS-curves to the right. 52Briefly explain which components of aggregate expenditure are affected by a change in the price level.

A fall in the value of the marginal product of capital. Higher real interest rates bc it is more expensive to borrow money. An investment tax credit but not an icnrease in the money supply.

The Paradox of Thrift 7. To lower expected returns if consumption or gross investment is increasing because of the lower price level thats a. A An increase in investment and a decrease in private consumption.

Decrease in the expected rate of return on investment caused by a decrease in business confidence. B An increase in spare capacity in the economy. An increase in the investment function.

Which of the following would cause investment spending to increase and aggregate demand to shift right. A reduction of the investment tax credit from 10 to 2 d. Decrease in the rate of interest.

Inflationary and Deflationary Gaps. A Change in Desired Consumption and Saving 6. Which of the following would cause business investment spending to rise.

And an increase in the interest rate causes. Consumption affecting value of. A Change in Desired Investment 2.

The Leakages-Injections Approach 4. An increase in the money supple but not an investment tax credit. D A decrease in investment and an increase in public saving.

The greater the value of the marginal propensity to consume. An increase in real GDP increases imports. Which of the following effects would likely take place.

A fall in the price of the product capital produces. May cause the interest rate to rise or fall depending on how sensitive investment is to interest rate changes. In equilibrium Y is constant and i decreases IS moves to the left and LM.

Investing to expand requires that consumers at least maintain their current spending. Interest rates to rise investment spending to. Increase in the rate of interest.

An increase in the money supply causes. Which of the following tends to cause business investment in plant and equipment to decline. Sales falling in relation to capacity from 90 to 60.

Will cause investment spending to rise or fall depending on the reason for the drop in the budget deficit. A fall in the investment demand curve. Induced Investment and Thrift 8.

A rise in the marginal product of capital. All of the above. Cause investment to fall higher interest rates.

Asked Aug 13 2017 in Economics by Natalie.

Which Of The Following Best Describes The Cause Effect Chain Of A Restrictive Monetary Policy In 2022 Monetary Policy Cause And Effect Aggregate Demand

Fud Is Short For Fear Uncertainty And Doubt The Goal Of Fud Is To Get You To Sell Not Buy So If The Shiller S W Investing Cryptocurrency Things To Sell

Forex Issa Forex Trading Tutorial South African Forex Millionaire Folex Carpet Spot Remover Forex App Win Forex Trading Tips Forex Trading Forex Brokers

Bagikan Artikel ini