Investment Will Be More Variable If

question 49

Multiple Choice

Investment will be more variable if

• A)there is variability in z'' that causes movements along the investment schedule over time.
• B)there is variability in r that shifts the investment schedule over time.
• C)stock prices remain sufficiently volatile.
• D)there is variability in z'' that shifts the investment schedule over time.
• E)the real interest rate remains below the return on stocks.

---

Definitions:

Net Profit Margin Ratio

A financial metric that shows the percentage of net income derived from total revenue, indicating how efficiently a company is managing its expenses.

Total Asset Turnover Ratio

A financial metric indicating how effectively a company uses its assets to generate sales revenue, calculated by dividing sales by average total assets.

Fixed Assets

Long-term tangible property, plant, and equipment that a company owns and uses in its operations to generate income.

Chlorine Atom

An elementary particle of chlorine, which is a chemical element with the symbol Cl and atomic number 17, known for its high reactivity and use as a disinfectant.