Consider the Long-Run Theory of Investment,saving and Growth

question 90

Multiple Choice

Consider the long-run theory of investment,saving and growth.For a given level of national income,a decrease in private consumption or government purchases will cause the equilibrium interest rate to

• A)increase and the flow of national saving to fall.
• B)increase and the flow of investment to increase.
• C)increase and the flow of investment to decrease.
• D)decrease and the flow of investment to decrease.
• E)decrease and the flow of investment to increase.

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Definitions:

Marketing Channel

Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

Ultimate Consumer

The final user of a product or service who does not plan to resell it.

Intermediaries

Entities that act as middlemen in the distribution process between producers and consumers, such as wholesalers and retailers.

Producer

An individual or organization that creates goods or services for sale to consumers or other businesses.