If a Major Technological Breakthrough Occurs, Then The

question 166

Multiple Choice

If a major technological breakthrough occurs, then the:

• A)investment demand curve will shift downward.
• B)investment demand curve will shift upward.
• C)consumption function will shift downward.
• D)consumption function will shift upward.
• E)economy will move to a new point along the existing investment demand curve.

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Definitions:

Additional Paid-In Capital

The amount of money that shareholders have paid in excess of the par value of the shares, representing a source of non-debt based capital for the company.

Goodwill

A non-physical asset created when acquiring a business at a cost higher than the fair value of its identifiable net assets.

Equity Method

An accounting technique used by companies to assess earnings generated by their investments in other companies, incorporating these earnings as part of their income.