Two Basic Determinants of Investment Spending Are

question 132

Multiple Choice

Two basic determinants of investment spending are

• A)consumer spending and government spending.
• B)expected returns and real interest rates.
• C)general price level and the level of output.
• D)domestic trade and international trade.

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Definitions:

General Reserve

Funds set aside out of profits for the future protection of the business and to strengthen its financial position.

Retained Earnings

The portion of a company's profits not distributed to shareholders but instead reinvested in the business or kept as reserve.

Partial Goodwill Method

An accounting approach where goodwill is calculated only for the portion of a subsidiary owned by the parent company.