The Two Major Determinants of the Level of Private Investment

question 29

Multiple Choice

The two major determinants of the level of private investment spending are

• A)the interest rate and business expectations
• B)the levels of consumption and saving
• C)the levels of national income and saving
• D)corporate income taxes and the level of saving
• E)interest rates and the level of private saving

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Definitions:

Biogenic Needs

Basic, physiological needs required for human survival, such as food, water, air, and shelter.

Psychogenic Needs

Psychological desires or needs that arise from the mental or emotional states of individuals, such as the need for recognition, esteem, or companionship.

Utilitarian Needs

Needs that are practical and functional in nature, emphasizing the utility and practical benefits of a product or service.

Hedonic Needs

Refers to the desire for sensory pleasure and experiences that provide enjoyment or luxury.