Private Investment Plays a Crucial Role in the Macroeconomy Because

question 81

Multiple Choice

Private investment plays a crucial role in the macroeconomy because it is:

• A) the largest expenditure component of GDP.
• B) the smallest expenditure component of GDP.
• C) an expenditure that adds to the economy's productive capacity.
• D) undertaken by the government and must be funded by tax revenue.

---

Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention.

Respondent

A person who answers or responds to something, such as a questionnaire or survey.

Formal Operational

The stage of cognitive development, described by Piaget, occurring from around age 12 and beyond, characterized by the ability to think abstractly, logically, and systematically.

Cognitive Development

The construction of thought processes, including remembering, problem-solving, and decision-making, from childhood through adolescence to adulthood.