Gross Private Domestic Investment, Which Consists of _____ and Changes

question 222

Multiple Choice

Gross private domestic investment, which consists of _____ and changes in private inventories, is an important determinant of _____.

• A) investment in stocks and bonds; inflation
• B) fixed investments; swings in the business cycle
• C) fixed investments; trade deficits
• D) investment in stocks and bonds; trade deficits

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Definitions:

Linear Equations

Equations between two variables that give a straight line when plotted on a graph.

Linear Equations

Equations of the first degree, meaning they involve only first-degree variables (like x) and their coefficients, forming a straight line when graphed.

Interest Rates

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.