Voluntary Investment Occurs Only If the

question 138

Multiple Choice

Voluntary investment occurs only if the

• A) cost of investment is zero.
• B) payoffs are known with certainty in advance.
• C) expected payoffs are greater than the costs.
• D) expected payoffs are greater than or equal to the costs.
• E) expected payoffs can be realized within one year's time.

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Definitions:

Money Supply

The entirety of assets available in monetary form within an economy's borders at a particular moment, consisting of cash, coinage, and records of balances in savings and checking accounts.

Aggregate Demand

The total amount of goods and services in an economy that will be purchased at all possible price levels in a given period.

Aggregate Supply

Aggregate supply is the total supply of goods and services that firms in a national economy plan to sell during a specific time period, affected by several factors including production costs and labor availability.

Short-Run

A period in economics where at least one input is fixed, usually applied to analyze immediate impacts on the economy.