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

question 2

Multiple Choice

Consider the long-run theory of investment,saving,and growth.An increase in the government budget surplus,everything else constant,will cause a(n)

• A)decrease in national saving.
• B)increase in national saving.
• C)decrease in the growth rate.
• D)equal increase in private consumption.
• E)equal decrease in private investment.

Recognize the significance of evidence and reasons in supporting claims.

Understand the importance of being unbiased and truthful for trustworthiness.

Apply critical thinking skills to evaluate the plausibility of claims.

Recognize conflicts of interest and how they affect trustworthiness.

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Definitions:

Required Rate

The minimum return an investor expects to achieve from an investment, taking into account its risk level.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.

Managers

Individuals responsible for directing and overseeing the operations and strategic direction of a company or organization.

Practice

The repeated exercise or application of an activity or skill to acquire or maintain proficiency in it.