An Input Whose Quantity Is Unaffected as Output Rises or Falls

question 30

Multiple Choice

An input whose quantity is unaffected as output rises or falls is a(n) ________ input.

• A) irrelevant
• B) dominant
• C) fixed
• D) independent
• E) superior

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Definitions:

Real Interest Rate

The rate of interest an investor, saver, or lender receives (or expects to receive) after allowing for inflation.

Domestic Investment

The total amount of money invested within a country’s borders by both the private and public sectors.

Net Capital Outflow

In economic terms, it's the net flow of capital, both monetary and physical, out of a country, taking into account investments abroad minus foreign investments domestically.

National Saving

The total of private and public savings in a country, often considered as the sum of household, business, and government savings.