Assume Net Exports Are R-4180, Consumption Is R95 000, Tax

question 58

Multiple Choice

Assume net exports are R-4180, consumption is R95 000, tax revenues are r₁9 000, government purchases are R28 500, and 2010 GDP, calculated by the expenditures approach, is r₁52 000.We can conclude that

• A)private investment was R36 860.
• B)public investment was R5 890.
• C)private investment was R9 880.
• D)private investment was R32 680.

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Definitions:

Risk-Free Rate

Refers to the return on investment with no risk of financial loss, often estimated by the yield of government bonds.

Market Portfolio

A theoretical bundle of all available assets in the market, representing the entire stock market and used as a benchmark to assess investment performance.

Efficient Frontier

A concept in modern portfolio theory that represents portfolios offering the highest expected return for a given level of risk or the lowest risk for a given level of expected return.