The Horizontal Investment Curve Used to Derive the TE Curve

question 76

Multiple Choice

The horizontal investment curve used to derive the TE curve means investment is

• A) directly related to Real GDP.
• B) indirectly related to Real GDP.
• C) independent of Real GDP.
• D) sometimes directly and sometimes indirectly related to Real GDP, depending upon whether it is planned capital or planned inventory investment.

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Definitions:

Form of Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to improve cash flow.

Securitizations

The process of pooling various types of contractual debt such as mortgages or loans and selling their related cash flows to third party investors as securities.

Consolidate

The process of combining financial statements from different entities within a group to produce a single set of financial statements.

Control Over Receivables

The management and oversight practices applied to ensure efficient collection of amounts owed to a company.